Shares of Trimble Navigation Ltd. (TRMB) declined almost 4 percent in extended trade on Tuesday after the GPS-enabled positioning products and applications maker's revenue for the first quarter missed analysts' estimates and it forecast second-quarter results below their expectations.
The Sunnyvale, California-based company's net income for the quarter declined 2 percent as higher operating expenses more than offset an increase in revenues. However, earnings per share matched Street expectations.
Steven Berglund, Trimble Navigation's president and chief executive officer said, "Our revenue growth in the quarter did not meet our expectation. While our original expectation anticipated conservative buying behavior by our users as a result of economic uncertainties, we were further impacted by the direct and indirect effects of the U.S. sequester and severe weather conditions in Europe and North America which delayed both the agricultural and construction seasons."
The company's Engineering & Construction revenue for the first quarter increased 7 percent to $266.87 million, while Field Solutions revenue were flat with the year-ago period at $147.48 million. Mobile Solutions revenue surged 41 percent to $110.16 million and Advanced Devices revenue grew 15 percent to $31.60 million.
Trimble Navigation's net income for the first quarter declined to $49.81 million or $0.19 per share from $50.82 million or $0.20 per share in the year-ago period. In March 2013, the company completed a 2:1 stock split.
The latest quarter's results include higher restructuring expenses, amortization of intangibles, stock-based compensation expenses and acquisition-related inventory step-up charges compared to the year-ago period.
Adjusted net income for the quarter was $97.90 million or $0.38 per share, compared to $87.26 million or $0.34 per share in the same period last year. On average, 9 analysts polled by Thomson Reuters expected the company to earn $0.38 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 11 percent to $556.11 million from $502.27 million last year. Analysts had a consensus revenue estimate of $578.32 million.
Looking ahead to the second quarter, Trimble Navigation forecast earnings in the range of $0.18 to $0.20 per share, adjusted earnings of $0.36 to $0.38 per share and revenues between $570 million and $580 million. Analysts currently expect the company to earn $0.40 per share for the quarter on revenues of $597.11 million.
TRMB closed Tuesday's regular trading session at $28.74, up $0.48 or 1.70 percent on a volume of 2.33 million shares. However, in after-hours, the stock declined $1.14 or 3.97 percent to $27.60.
For comments and feedback: editorial@rttnews.com