Trimble Navigation Limited Earnings: Here’s Why Investors Don’t Like These Results

Trimble Navigation Limited (NASDAQ:TRMB) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.66%.

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Trimble Navigation Limited Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.76% to $0.38 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Rose 10.72% to $556.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Trimble Navigation Limited reported adjusted EPS income of $0.38 per share. By that measure, the company met the mean analyst estimate of $0.38. It missed the average revenue estimate of $578.32 million.

Quoting Management: “Our revenue growth in the quarter did not meet our expectation. While our original expectation anticipated conservative buying behavior by our users as a result of economic uncertainties, we were further impacted by the direct and indirect effects of the U.S. sequester and severe weather conditions in Europe and North America which delayed both the agricultural and construction seasons,” said Steven W. Berglund, Trimble’s president and chief executive officer. “In spite of the pressure on revenue, we maintained non-GAAP operating margins close to twenty percent and increased our non-GAAP gross margin compared to the first quarter of 2012. We do not believe the fundamentals of our markets have changed and our long term expectations remain unchanged. While we are cautious about second quarter prospects, we currently anticipate improved organic growth in the second half of 2013.”

Key Stats (on next page)…

Revenue increased 7.87% from $515.52 million in the previous quarter. EPS increased 31.03% from $0.29 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.40 and has not changed. For the current year, the average estimate has moved down from a profit of $1.55 to a profit of $1.52 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)