We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Trimble's (TRMB) Q1 Earnings and Revenues Beat Estimates
Read MoreHide Full Article
Trimble Inc. (TRMB - Free Report) reported first-quarter 2018 non-GAAP earnings of 44 cents per share, which surpassed the Zacks Consensus Estimate by 4 cents. The figure increased 33.4% on a year-over-year basis and 12.8% sequentially.
Revenues increased 20.9% year over year and 4.8% on a sequential basis to $742.2 million, which came well ahead of the Zacks Consensus Estimate of $720 million. Top-line growth was driven by strong performance of segments, benefits from acquisitions and improved end-market results.
In the reported quarter, the company has restated its year-ago quarter figures with the adoption of new accounting standard, ASC 606.
Product revenues (67.1% of revenues) came in $497.8 million, up 21.5% on a year-over-year basis and 6.7% sequentially. Services revenues (17.3% of revenues) came in $128.8 million, up 20.8% year over year but down 0.8% on a sequential basis. Subscription revenues (15.6% of revenues) increased 22.4% from the year-ago quarter and 3.3% sequentially to $115.6 million.
Share price of the company dropped almost 1.8% in the after-hours trade. Further, the stock dipped 0.1% on a year-to-date basis, underperforming the industry’s rally of 8.9%.
In the first quarter, Trimble’s software portfolio expanded with the launch of Trimble 4D Go for Buildings that provides new workflow to building owners and structural engineers. Also, the company rolled out three new versions of its software —Tekla Structures 2018, Tekla Structural Designer 2018 and Tekla Tedds 2018.
Further, the company partnered with Aquarius Spectrum to expand its smart water management sensors and software solutions portfolio.
Segments in Detail
Trimble operates in four organized segments: Buildings and Infrastructure, Geospatial, Resources and Utilities and Transportation segments.
Buildings and Infrastructure: This segment generated $224.7 million sales, accounting for 30.3% of the total revenues, which grew 20% on a year-over-year basis out of which 5% was contributed by acquisitions. This was driven by the growing building and civil engineering construction business. Also, migration of SketchUp to a SaaS business model remained positive with growing monthly active users. Further, benefits from acquisitions of e-Builder accelerated sales.
Geospatial: Sales from this segment were $174.5 million, accounting for 23.5% of total revenues. The figure increased 17%, compared with the year-ago quarter. A strong performance of Applanix division which led to increased sales of inertial based technologies to automotive companies aided the top-line growth in this segment. Further, the company witnessed a strong organic revenue growth which was attributed to expanding product portfolio.
Resources and Utilities: The segment generated sales of $159.2 million, accounting for 21.5% of total revenues. The figure was up 32% on a year-over-year basis, out of which 23% was contributed by acquisitions. The segment performed well in agriculture market, especially outside of U.S. The company’s GFX-750 guidance system also exhibited sales which came ahead of its forecasted figure. Also, growing customer wins and well performing correction services business aided the top-line growth within this segment.
Transportation: Sales from this segment went up 19% to $183.8 million, accounting for 24.7% of total revenues. This quarter witnessed strong performance of fleet management solutions. Further, implementation of ELD regulations also benefited the company’s business by providing competitive wins. Moreover, acquisitions contributed 2% to the revenues in this segment.
Operating Details
In the first quarter, gross margin came in at 56.9%, which expanded 40 basis points (bps) year over year. The increase was attributed to favorable revenue mix.
Operating expenses were $282.7 million (38.1% of revenues), which went up 19.1%, compared to the year-ago quarter.
Operating margin came in at 18.8%, which also expanded 120 bps year-over-year, driven by strong segmental performance, especially geospatial and infrastructure segment.
As of Mar 31, 2018, cash and cash equivalents were $274.5 million, compared with $358.5 million as of Dec 31, 2017. Inventories were $289.1 million, which increased from $264.6 million in the last quarter. Long-term debt was $691.8 million at the end of first quarter, compared to $785.5 million at the end fourth quarter.
Cash flow from operations was $82.9 million in the reported quarter, which declined 20.3% from the prior-year quarter. This fall was due to acquisition impacts and payment of incentive compensation.
In first quarter, Trimble repurchased 1.3 million shares worth $50 million. At the end of the reported quarter, there were shares worth $392 million under the share repurchase authorization.
Guidance
For second-quarter 2018, Trimble expects non-GAAP earnings between 42 cents and 46 cents per share. The Zacks Consensus Estimate is currently pegged at 44 cents
The company expects revenues between $755 million and $785 million and the Zacks Consensus Estimate is pegged at $751.3 million for the second quarter revenues.
Non-GAAP operating margin for the next quarter is anticipated to lie in a range of 18-19%.
Long-term expected earnings growth rate for Nice, Agilent Technologies and Analog Devices is currently pegged at 12.5%, 10.75% and 12%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Trimble's (TRMB) Q1 Earnings and Revenues Beat Estimates
Trimble Inc. (TRMB - Free Report) reported first-quarter 2018 non-GAAP earnings of 44 cents per share, which surpassed the Zacks Consensus Estimate by 4 cents. The figure increased 33.4% on a year-over-year basis and 12.8% sequentially.
Revenues increased 20.9% year over year and 4.8% on a sequential basis to $742.2 million, which came well ahead of the Zacks Consensus Estimate of $720 million. Top-line growth was driven by strong performance of segments, benefits from acquisitions and improved end-market results.
In the reported quarter, the company has restated its year-ago quarter figures with the adoption of new accounting standard, ASC 606.
Product revenues (67.1% of revenues) came in $497.8 million, up 21.5% on a year-over-year basis and 6.7% sequentially. Services revenues (17.3% of revenues) came in $128.8 million, up 20.8% year over year but down 0.8% on a sequential basis. Subscription revenues (15.6% of revenues) increased 22.4% from the year-ago quarter and 3.3% sequentially to $115.6 million.
Share price of the company dropped almost 1.8% in the after-hours trade. Further, the stock dipped 0.1% on a year-to-date basis, underperforming the industry’s rally of 8.9%.
In the first quarter, Trimble’s software portfolio expanded with the launch of Trimble 4D Go for Buildings that provides new workflow to building owners and structural engineers. Also, the company rolled out three new versions of its software —Tekla Structures 2018, Tekla Structural Designer 2018 and Tekla Tedds 2018.
Further, the company partnered with Aquarius Spectrum to expand its smart water management sensors and software solutions portfolio.
Segments in Detail
Trimble operates in four organized segments: Buildings and Infrastructure, Geospatial, Resources and Utilities and Transportation segments.
Buildings and Infrastructure: This segment generated $224.7 million sales, accounting for 30.3% of the total revenues, which grew 20% on a year-over-year basis out of which 5% was contributed by acquisitions. This was driven by the growing building and civil engineering construction business. Also, migration of SketchUp to a SaaS business model remained positive with growing monthly active users. Further, benefits from acquisitions of e-Builder accelerated sales.
Geospatial: Sales from this segment were $174.5 million, accounting for 23.5% of total revenues. The figure increased 17%, compared with the year-ago quarter. A strong performance of Applanix division which led to increased sales of inertial based technologies to automotive companies aided the top-line growth in this segment. Further, the company witnessed a strong organic revenue growth which was attributed to expanding product portfolio.
Resources and Utilities: The segment generated sales of $159.2 million, accounting for 21.5% of total revenues. The figure was up 32% on a year-over-year basis, out of which 23% was contributed by acquisitions. The segment performed well in agriculture market, especially outside of U.S. The company’s GFX-750 guidance system also exhibited sales which came ahead of its forecasted figure. Also, growing customer wins and well performing correction services business aided the top-line growth within this segment.
Transportation: Sales from this segment went up 19% to $183.8 million, accounting for 24.7% of total revenues. This quarter witnessed strong performance of fleet management solutions. Further, implementation of ELD regulations also benefited the company’s business by providing competitive wins. Moreover, acquisitions contributed 2% to the revenues in this segment.
Operating Details
In the first quarter, gross margin came in at 56.9%, which expanded 40 basis points (bps) year over year. The increase was attributed to favorable revenue mix.
Operating expenses were $282.7 million (38.1% of revenues), which went up 19.1%, compared to the year-ago quarter.
Operating margin came in at 18.8%, which also expanded 120 bps year-over-year, driven by strong segmental performance, especially geospatial and infrastructure segment.
Trimble Inc. Price, Consensus and EPS Surprise
Trimble Inc. Price, Consensus and EPS Surprise | Trimble Inc. Quote
Balance Sheet & Cash Flow
As of Mar 31, 2018, cash and cash equivalents were $274.5 million, compared with $358.5 million as of Dec 31, 2017. Inventories were $289.1 million, which increased from $264.6 million in the last quarter. Long-term debt was $691.8 million at the end of first quarter, compared to $785.5 million at the end fourth quarter.
Cash flow from operations was $82.9 million in the reported quarter, which declined 20.3% from the prior-year quarter. This fall was due to acquisition impacts and payment of incentive compensation.
In first quarter, Trimble repurchased 1.3 million shares worth $50 million. At the end of the reported quarter, there were shares worth $392 million under the share repurchase authorization.
Guidance
For second-quarter 2018, Trimble expects non-GAAP earnings between 42 cents and 46 cents per share. The Zacks Consensus Estimate is currently pegged at 44 cents
The company expects revenues between $755 million and $785 million and the Zacks Consensus Estimate is pegged at $751.3 million for the second quarter revenues.
Non-GAAP operating margin for the next quarter is anticipated to lie in a range of 18-19%.
Zacks Rank and Stocks to Consider
Trimble currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Nice (NICE - Free Report) , Analog Devices (ADI - Free Report) and Agilent Technologies (A - Free Report) . While Nice sports a Zacks Rank #1 (Strong Buy), Agilent Technologies and Analog Devices carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings growth rate for Nice, Agilent Technologies and Analog Devices is currently pegged at 12.5%, 10.75% and 12%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>