) is set to report fourth-quarter 2013 results on Feb 11. Last
quarter, it posted 9.1% positive surprise. Let's see how things
are shaping up for this announcement.
Growth Factors this Past Quarter
Trimble's third-quarter earnings of 36 cents exceeded the
Zacks Consensus Estimate by 3 cents due to higher gross margins
and lower-than-expected operating expenses. However, revenues in
the last quarter were impacted by inconsistent market conditions
and weak investments, partially offset by the strengthening U.S.
commercial and residential construction markets.
Trimble's recent acquisitions are strengthening its product
portfolio which in turn is positioning it better in markets with
substantial growth prospects.
For the fourth quarter, Trimble expects revenues in the range
of $560-$580 million. Earnings on a GAAP basis are expected in
the range of 17 cents-21 cents per share and 35 cents-39 cents
per share on a non-GAAP basis.
Our proven model does not conclusively show that Trimble will
beat earnings this quarter. This is because a stock needs to have
both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for
this to happen. This is not the case here as you will see
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 33 cents. Hence, the difference is 0.00%.
Trimblehas a Zacks Rank #3 (Hold) which, when combined with a
0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat:
Melco Crown Entertainment Limited
), with Earnings ESP of +7.50% and a Zacks Rank #1 (Strong
Ship Finance International Limited
), with Earnings ESP of +52.63% and a Zacks Rank #1.
Salix Pharmaceuticals Ltd.
), with Earnings ESP of +18.75% and a Zacks Rank #1.
MELCO CROWN ENT (MPEL): Free Stock Analysis
SHIP FIN INTL (SFL): Free Stock Analysis
SALIX PHARM-LTD (SLXP): Free Stock Analysis
TRIMBLE NAVIGAT (TRMB): Free Stock Analysis
To read this article on Zacks.com click here.