Trimble Profit Tops Estimates, Details Strong Outlook; Stock Up - Update

(RTTNews) - Trimble Navigation Ltd. (TRMB) Thursday reported a modest increase in third-quarter profit, led mainly by growth at most segments and lower income tax expense, offset by amortization and research expenses. While quarterly earnings easily topped Wall Street estimates, sales missed expectations.

The company provided a strong outlook for the fourth quarter, sending its shares up over 7 percent in after-hours trade on the Nasdaq.

Trimble designs positioning products enabled by global positioning system, optical, laser, and wireless communications technology.

The Sunnyvale, California-based company posted quarterly net income of $54.5 million, compared with $53.4 million last year. On a per share basis, earnings were flat at $0.21 due to a higher share count.

Results for the recent quarter included amortization costs of $41.6 million, compared with $31.4 million in the prior year.

Excluding items, adjusted earnings for the quarter were $102 million or $0.39 per share, compared with $87 million or $0.34 per share a year ago. On average, 13 analysts polled by Thomson Reuters expected earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 10 percent to $556.5 million from $505 million in the prior year, but short of the twelve analysts' consensus revenue estimate of $559.07 million.

Revenues at its key Engineering and Construction business gained 8 percent year-over-year and Mobile Solutions jumped 35 percent. Field Solutions segment edged down 3 percent.

Results were offset by operating expenses that climbed to $232 million from $199 million last year, due to amortization, research and other expenses.

The company had a reprieve in the form of income tax provision that declined to $9 million from $13 million last year.

For the fourth quarter, Trimble has forecast earnings of $0.17 to $0.21 per share, adjusted earnings of $0.35 to $0.39 per share and revenues of $560 million to $580 million. Analysts currently expect earnings of $0.35 per share on revenues of $564.37 million for the quarter.

Trimble stock closed Thursday at $28.52, up $0.14 or 0.48%, on a volume of 2.8 million shares. In after hours, the stock gained $2.10 or 7.38%, to trade at $30.63. In the past year, the share traded in the range of $23.37 - $32.03.