Better Days Ahead For Trimble, Just A Question Of When
Fri, Feb. 26, 10:16 AM
- Three months after upgrading Trimble (TRMB +1.8%) to Buy, Goldman has added the positioning/navigation hardware provider to its Conviction Buy list, and set a $29 target.
- Goldman's call comes two weeks after Trimble soared in the wake of a Q4 beat and in-line guidance. Needham upgraded at that time.
Wed, Feb. 10, 9:48 AM
- Trimble (NASDAQ:TRMB) has surged above $22 after beating Q4 estimates and issuing Q1 guidance that was better than feared in light of energy industry and macro pressures - revenue of $565M-$595M and EPS of $0.25-$0.30 vs. a consensus of $574.5M and $0.29.
- Q4 top-line performance: Engineering & Construction revenue -3% Y/Y to $319.1M. Field Solutions (agriculture) -2% to $79.4M. Mobile Solutions +7% to $132.2M. Advanced Devices -5% to $29M. Forex had a 3% total revenue impact. CEO Steven Bergulund: "Agriculture revenue was flat year to year, geospatial continues its recovery from the oil price shock, building construction's growth continues to be consistent, and transportation and logistics continues to build momentum."
- Financials: Lifting EPS: Non-GAAP operating expenses fell by $4M Y/Y to $227.4M, and gross margin rose 90 bps Y/Y to 56.9%. $234.4M worth of shares were repurchased over the whole of 2015. Trimble ended 2015 with $116M in cash and $730M in long-term debt.
- Needham has responded by upgrading to Buy and setting a $24 target. "For the second quarter in a row TRMB solidly exceeded its guidance ... While many macro challenges remain, we believe TRMB's C2H15 results suggest its business has stabilized and is likely poised for reasonable growth with expanding operating margins in C2016. with shares trading near-trough [next 12 month] P/E on near-trough earnings, we think they are poised to work higher in 2016 if the company can show a sustainable recovery in revenue and earnings."
- Wedbush's David Rose (Outperform, $28 target): "Trimble is well positioned to benefit from the increasing demand to drive productivity through mobile connectivity across a number of industries. In our view, the ongoing strategy to drive margins and reignite growth in 2016 is playing out, making Trimble one of the more attractive industrial technology companies, with an increasing mix of high-margin software and subscription-based services."
- Trimble's Q4 results, earnings release
Dec. 10, 2015, 12:59 PM| Dec. 10, 2015, 12:59 PM
Dec. 2, 2015, 11:01 AM
- "In our view, Trimble (TRMB +3.8%) is an attractive way to participate in the growing adoption of technology across commercial and industrial markets to drive asset productivity," writes Wedbush's David Rose, launching coverage with an Outperform rating and $28 target. "As a leading provider of work process solutions, Trimble is capitalizing on its core strengths of location positioning systems, mapping, telematics and data analytics to capitalize on the growth in mobile connectivity to improve asset efficiency and work flows."
- Rose also thinks Trimble, which has had a rough 2015 due to weak agricultural and oil/gas industry demand, has a more encouraging 2016 growth outlook, given weaker markets will have "a less material impact" on sales/profits. "Meanwhile, the company's rapidly growing Mobile Solutions segment is having a more meaningful effect on total growth that should help support a multi-year horizon of mid-single-digit top-line growth for Trimble."
- The bullish coverage follows a November Goldman upgrade, and comes five weeks after Trimble popped in the wake of a Q3 beat. Shares are within $0.20 of a 5-month high of $23.74.
Nov. 20, 2015, 10:08 AM
- Goldman's Jerry Revich has upgraded Trimble (NASDAQ:TRMB) to Buy, while keeping his $26 target. He cites the positioning/navigation hardware firm's efforts to cut costs and extend its BuildingPoint construction product distribution network.
- Trimble soared in late October after beating Q3 estimates and issuing better-than-feared Q4 guidance. Shares go for 18x a 2016 EPS consensus of $1.27.
Nov. 11, 2015, 2:33 PM
- Trimble (TRMB +1.2%) is buying Telog Instruments, a provider of wireless remote monitoring hardware, analytics software, and data acquisition recorders for water utilities and private contractors. Terms are undisclosed.
- Trimble: "Applications for Telog solutions include remote monitoring of flow rates, reservoir and tank levels, water quality, well and groundwater levels, pump station performance, hydrant and valve pressure and sewer overflows. The solutions can also be combined with automated metering infrastructure to provide smart water networks that improve sustainability and water conservation ... The acquisition of Telog enables us to expand our portfolio of hardware and software products with industry leading real-time wireless sensors and monitoring solutions."
- Itron (ITRI -0.4%) is a notable supplier of both smart water meters and related data-collection modules.
- Prior Trimble acquisitions
Oct. 30, 2015, 12:45 PM
Oct. 30, 2015, 11:13 AM
- Down over 50% from its 2014 highs going into earnings - weak agriculture and energy market demand has weighed - Trimble (NASDAQ:TRMB) is soaring after beating Q3 estimates and issuing better-than-feared Q4 guidance: Revenue of $520M-$550M and EPS of $0.19-$0.26 vs.a consensus of $557.4M and $0.25.
- Boosting Q3 EPS: $154.6M was spent to buy back 8.2M shares, and job cuts led operating expenses (non-GAAP) to drop 1% Y/Y to $217.7M. Gross margin fell 40 bps Y/Y to 57.4%.
- Field solutions (agriculture) revenue fell 17% Y/Y to $73.5M, engineering construction revenue 5% to $326.4M, and advanced devices 6% to $30.8M. Mobile solutions (fleet management/asset tracking) revenue rose 9% to $131.6M. Product revenue fell 10% Y/Y to $373M, service revenue rose 6% to $103.9M, and subscription revenue rose 20% to $85.4M.
- Q3 results, PR, CC transcript
Aug. 5, 2015, 1:28 PM
- Trimble (TRMB -15.3%) has fallen to its lowest levels since 2009 after missing Q2 sales estimates (while posting in-line EPS) and guiding for Q3 revenue of $535M-$560M and EPS of $0.19-$0.26, below a consensus of $607.7M and $0.34.
- As was the case in Q1, Field Solutions (agriculture) revenue was a weak spot in Q2, falling 24% to $87.1M. Engineering/construction revenue fell 8% to $338.5M, advanced devices fell 13% to $31.9M, and mobile solutions rose 4% to $128.3M. The company notes "ongoing challenges" in agriculture, forex, weak oil prices, and "a sharp pullback" in Chinese/Brazilian demand are weighing on results.
- Gross margin fell 240 bps Y/Y to 56.1%. Operating expenses were 39.4% of revenue vs. 35.3% a year ago, and rose by $4.5M on an absolute basis. $73M worth of shares were repurchased between Q1 and Q2.
- Q2 results, PR
Aug. 5, 2015, 9:19 AM
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Aug. 4, 2015, 5:38 PM
Apr. 30, 2015, 6:18 PM
- On top of missing Q1 estimates, Trimble (NASDAQ:TRMB) is guiding for Q2 revenue of $570M-$600M and EPS of $0.23-$0.30, below a consensus of $641.3M and $0.37.
- "We continued to face the same headwinds we encountered in late 2014, primarily associated with the agriculture market, the fallout from the oil price decline, and the strong dollar," says CEO Steven Berglund. "On the positive side, we had several meaningful competitive wins that validate our strategy in construction and transportation. We continue to see a challenge in the first half of 2015 with a return to growth and improved margins in the second half."
- Field Solutions (agriculture product) sales fell 17% Y/Y in Q1 to $115.3M. Mobile Solutions +8% to $128.2M. Engineering/construction -3% to $299.3M. Advanced Devices +3% to $39.8M.
- Forex had a 4% impact on total revenue growth, and gross margin fell 140 bps Y/Y to 52.7%. $12.6M was spent on buybacks.
- Shares have fallen to $23.75 AH. The 52-week low is $23.68.
- Q1 results, PR
Feb. 10, 2015, 6:39 PM
- Trimble (NASDAQ:TRMB) expects Q1 revenue of $590M-$620M and EPS of $0.26-$0.33, below a consensus of $620.1M and $0.37.
- A 27% Y/Y drop in Field Solutions (agriculture products) revenue to $80.7M contributed to the Q4 revenue miss. Engineering & Construction revenue fell 1% to $328.5M, Mobile Solutions 1% to $124.1M, and Advanced Devices 2% to $30.5M. Forex had a 2% revenue impact.
- GAAP costs/expenses fell 14% to $215.7M, helping EPS meet estimates in spite of the revenue miss. Gross margin (non-GAAP) fell to 56% from 57.8% in Q3 and 57% a year ago. $33M was spent on buybacks.
- CEO Steven Berglund: "We were impacted in the fourth quarter by a stronger dollar, deferred revenue accounting effects associated with new acquisitions, and the short-term reaction to the decline in oil prices ... Agriculture revenue for the quarter was consistent with our expectation and represents a significant year-over-year decline ... Despite continuing headwinds in the first half of 2015 we anticipate strengthening results as the year progresses."
- Shares are down to $25.35 AH. They were initially showing steeper AH losses.
- Q4 results, PR
Oct. 31, 2014, 9:06 AM
Oct. 30, 2014, 6:38 PM
- Trimble (NASDAQ:TRMB) expects Q4 revenue of $560M-$590M and EPS of $0.26-$0.32, well below a consensus of $638M and $0.41.
- CEO Steven Berglund, discussing Trimble's Q3: "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."
- Q3 results, PR
May 7, 2014, 9:15 AM
Trimble Navigation Ltd. engages in the provision of providing positioning, wireless and software technology solutions. It operates through the following business segments: Engineering and Construction, Field Solutions, Mobile Solutions and Advanced Devices. The Engineering and Construction... More
Industry: Scientific & Technical Instruments
Country: United States