Shares of Trimble Navigation Ltd. (TRMB - Analyst Report) touched a new 52-week high of $28.18 on Sep 26, eventually closing at $27.95. The company returned 73.4% in the past one year and has added roughly 30.3% year to date. Average volume of shares traded over the last three months was approximately 1,351K.
What's Driving Trimble Navigation?
Trimble is an OEM of GPS-based products and control systems. The company’s solutions lead to better asset utilization and thereby increase the operational efficiency of its customers.
Trimble’s various initiatives, such as lowering of the cost structure, strategic acquisitions and agreements, product enhancements, international expansion and strong second-quarter results are some of the catalysts driving the stock.
In the second quarter, Trimble reported revenues of $609.6 million, up4.6% sequentially and 4.1% year over year. Also, revenues were within the company’s guided range of $595–$625 million.
Management provided a decent guidance for the third quarter of 2016. Revenues are expected in the range of $587–$617 million, while the Zacks Consensus Estimate stands at $597.6 million.
For 2016, the company’s Mobile Solutions segment is expected to continue benefiting from growth in Transportation and Logistics. Its Field Services business is expected to see some strength in agriculture sales. Also, management expects geospatial revenues to return to growth.
Moreover, the company is making all efforts to reduce its expenses and focus on more growth areas. Cost savings from these restructuring efforts will act as a positive catalyst for the company. Trimble’s growth strategies, coupled with the cost-control measures, delivered great value to shareholders in 2015 and areexpected to do the same in 2016.
In addition, Trimble has an impressive record of returning cash to shareholders through dividends and share buybacks. During the quarter, Trimble repurchased approximately $80 million of its common stock, while $158 million remains under the current share repurchase authorization.
Additionally, Trimble delivered an average positive earnings surprise of 9.96% in the trailing four quarters backed by its robust business portfolio.
Trimble currently carries a Zacks Rank #3 (Hold). Stocks worth considering in the industry include Facebook, Inc. (FB - Analyst Report) , LinkedIn Corporation (LNKD - Analyst Report) and Yirendai Ltd. (YRD - Snapshot Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Facebook witnessed a 0.51% dip in its last day’s stock price. On average, the company delivered a positive earnings surprise of 18.25% in the trailing four quarters.
LinkedIn witnessed a 0.13% surge in its last day’s stock price. On average, the company delivered a positive earnings surprise of 115.2% in the trailing four quarters.
Yirendai witnessed a 2.07% decline in its last day’s stock price. On average, the company delivered a negative earnings surprise 187.7% in the trailing four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>