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Trimble's (TRMB) Q3 Earnings Beat Estimates, Revenues lag
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Trimble Inc. (TRMB - Free Report) delivered non-GAAP earnings of 49 cents per share in the third quarter of 2018, which surpassed the Zacks Consensus Estimate by 4 cents.
The figure increased 25.6% on a year-over-year basis but decreased 13.6% sequentially.
Coming to price performance, the stock has lost6.5% on a year-to-date basis compared with the industry’s decline of 8.5%.
Revenues
Revenues in the third quarter increased 19% year over year to $804.7 million. However, the figure missed the Zacks Consensus Estimate of $807 million.
The year-over-year growth in revenues was driven by the strong performance of its segments. Further, the company recorded robust organic growth of more than 10%. Moreover, acquisitions contributed 9% to the top-line growth of the company.
Product revenues (62.8% of the total revenues) came in at $499.7 million, up 11.2% on a year-over-year basis. Services revenues (25.9% of revenues) came in at $156.5 million, up 25.9% year over year. Subscription revenues (17.5% of revenues) increased 35.6% from the year-ago quarter to $139 million.
Operating Details
In the third quarter, gross margin came in at 57.9%, expanding 200 basis points (bps) year over year. The increase was attributed to a favorable product mix.
Operating expenses were $325.4 million in the third quarter, expanding 22.1%from the year-ago quarter.
Non-GAAP operating margin came in at 20.8%, expanding 210 bps year over year, driven by strong organic growth.
Balance Sheet & Cash Flow
As of Sep 30, 2018, cash and cash equivalents were $205.4 million, decreasing from $571 million in the last reported quarter. Inventories were $286.3 million, increasing from $282.4 million in the second quarter.
Long-term debt was $1.79 billion at the end of third quarter compared with $1.29 billion at the end of second quarter.
Cash flow from operations was $117 million in the quarter under review versus $185 million in the last reported quarter.
Guidance
For fourth-quarter 2018, Trimble expects non-GAAP earnings between 44 cents and 48 cents per share. The Zacks Consensus Estimate for the same is pegged at 46 cents per share.
The company expects non-GAAP revenues between $791 million and $821 million. The corresponding Zacks Consensus Estimate stands at $827.5 million.
Long-term earnings growth rate for boohoo group, IAC/InterActiveCorp and AMETEK is currently pegged at 25%, 15% and 10.97%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Trimble's (TRMB) Q3 Earnings Beat Estimates, Revenues lag
Trimble Inc. (TRMB - Free Report) delivered non-GAAP earnings of 49 cents per share in the third quarter of 2018, which surpassed the Zacks Consensus Estimate by 4 cents.
The figure increased 25.6% on a year-over-year basis but decreased 13.6% sequentially.
Coming to price performance, the stock has lost6.5% on a year-to-date basis compared with the industry’s decline of 8.5%.
Revenues
Revenues in the third quarter increased 19% year over year to $804.7 million. However, the figure missed the Zacks Consensus Estimate of $807 million.
The year-over-year growth in revenues was driven by the strong performance of its segments. Further, the company recorded robust organic growth of more than 10%. Moreover, acquisitions contributed 9% to the top-line growth of the company.
Product revenues (62.8% of the total revenues) came in at $499.7 million, up 11.2% on a year-over-year basis. Services revenues (25.9% of revenues) came in at $156.5 million, up 25.9% year over year. Subscription revenues (17.5% of revenues) increased 35.6% from the year-ago quarter to $139 million.
Operating Details
In the third quarter, gross margin came in at 57.9%, expanding 200 basis points (bps) year over year. The increase was attributed to a favorable product mix.
Operating expenses were $325.4 million in the third quarter, expanding 22.1%from the year-ago quarter.
Non-GAAP operating margin came in at 20.8%, expanding 210 bps year over year, driven by strong organic growth.
Balance Sheet & Cash Flow
As of Sep 30, 2018, cash and cash equivalents were $205.4 million, decreasing from $571 million in the last reported quarter. Inventories were $286.3 million, increasing from $282.4 million in the second quarter.
Long-term debt was $1.79 billion at the end of third quarter compared with $1.29 billion at the end of second quarter.
Cash flow from operations was $117 million in the quarter under review versus $185 million in the last reported quarter.
Guidance
For fourth-quarter 2018, Trimble expects non-GAAP earnings between 44 cents and 48 cents per share. The Zacks Consensus Estimate for the same is pegged at 46 cents per share.
The company expects non-GAAP revenues between $791 million and $821 million. The corresponding Zacks Consensus Estimate stands at $827.5 million.
Trimble Inc. Price, Consensus and EPS Surprise
Trimble Inc. Price, Consensus and EPS Surprise | Trimble Inc. Quote
Zacks Rank and Stocks to Consider
Trimble currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are boohoo group plc (BHOOY - Free Report) , IAC/InterActiveCorp (IAC - Free Report) and AMETEK, Inc. (AME - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rate for boohoo group, IAC/InterActiveCorp and AMETEK is currently pegged at 25%, 15% and 10.97%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>