Trimble Q3 Profit Down, Misses View; Shares Down 7%

(RTTNews) - Trimble (TRMB) Thursday reported a plunge in profit for the third quarter, as higher operating costs offset a growth in revenues. Shares of the company fell 7 percent in the extended hours after its earnings and revenues fell short of Wall Street estimates.

Commenting on the results, Chief Executive Steven Berglund said, "While we recorded a year-over-year increase in revenue, the quarter was unimpressive. Our results in agriculture and Europe were both weaker than we originally anticipated."

Sunnyvale, California-based Trimble's third-quarter net income dropped to $11.8 million or $0.04 per share from $54.5 million or $0.21 per share a year ago.

Adjusted profit for the quarter dropped to $87.1 million or $0.33 per share from $101.9 million or $0.39 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 5 percent to $584.8 million from $556.5 million last year. Analysts had a consensus revenue estimate of $603.8 million for the quarter.

Engineering and construction division, which contributes the majority of revenues, rose 10 percent to $342.3 million, while field solutions dropped 11 percent. Mobile Solutions revenues was up 7 percent, while Advanced Devices slipped 1 percent.

Gross margins improved to 54.2 percent from 53.0 percent a year ago, but operating margin dropped to 1.9 percent from 11.3 percent a year ago.

TRMB closed Thursday's trading at $30.43, up $0.26 or 0.86%, on the Nasdaq. The stock, however, dropped $2.14 or 7.03% in the after-hours trade.