Trimble Navigation Q4 Profit Surges, Shares Up 7% - Update

(RTTNews) - Global-positioning equipment maker Trimble Navigation Ltd. (TRMB), Tuesday said its profit for the fourth quarter surged from prior year, due largely to a 16 percent revenue growth and strong margins. Trimble stock climbed a near seven percent in extended trading hours, following the announcement.

Sunnyvale, California-based Trimble's fourth quarter profit rose to $60.0 million or $0.23 per share from $33.2 million or $0.13 per share a year ago. Adjusted earnings improved to $0.43 per share from $0.28 per share a year ago.

Twelve analysts polled by Thomson Reuters expected the company to earn $0.37 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Trimble designs navigation equipment using GPS technology, and has been reporting a strong profit growth for past several quarters, largely owed to growth in revenues across almost all segments.

"The fourth quarter results were a strong ending to a challenging year. Beyond the revenue growth in the quarter, fundamental financial performance continued to progress, with improved margins - reflecting a richer mix of higher-value product solutions," said Steven Berglund, Trimble's president and chief executive officer.

Fourth quarter revenues grew 16 percent to $599.2 million from $515.5 million a year ago. Twelve analysts had a consensus revenue estimate of $567.38 million for the fourth quarter.

Revenues at its key Engineering and Construction business surged 23 percent year-over-year to $331.1 million, and Mobile Solutions jumped 20 percent to $125.9 million. Field Solutions segment grew 3 percent to $111.1 million, while Advanced Devices unit slipped 8 percent to $31.1 million.

Fourth-quarter gross margin, or percentage of revenues left after subtracting cost of revenues, strengthened to 53.3 percent from 49.7 percent last year. Operating costs, as percent of revenues, dropped to 42.1 percent from 43.9 percent last year.

Looking forward to the first quarter, Trimble expects earnings of $0.23 to $0.26 per share, adjusted earnings of $0.40 to $0.43 per share, and revenue between $610 million and $630 million.

Analysts currently expect earnings of $0.42 per share on revenues of $616.92 million for the quarter.

TRMB closed Tuesday's trading at $32.62, up $0.60 or 1.87%, on the Nasdaq. The stock further gained $2.28 or 6.99%, in after hours trade.