Trimble Navigation Limited
) is set to report second-quarter 2014 results on Aug 5. Last
quarter, it posted a 5.3% negative surprise. Let's see how things
are shaping up for this announcement.
Growth Factors This Past Quarter
Trimble Navigation delivered mixed first quarter 2013 results with
the bottom line exceeding the Zacks Consensus Estimate and the top
line missing the same. However, revenues were up 0.9% sequentially
and 8.7% year over year. The increase was primarily driven by
strong performance in the Field Solutions and Advanced Devices
Recently, Trimble acquired the assets of privately-held MAYBIM, a
provider of 3D Building Information Modeling (BIM) services. It
also acquired Mining Information Systems (MIS), a provider of
enterprise-level information. The company's acquisitions will help
it to enhance its product line, thereby boosting the top line.
For the second quarter, management expects revenues in the range of
$605-$630 million, while the Zacks Consensus Estimate for revenues
is pegged at $620 million. Earnings per share on a GAAP basis are
expected in the range of 22-26 cents and on a non-GAAP basis within
38-42 cents. The tax rate is expected in the range of 20-22%, while
share count is likely to be 265.0 million.
Our proven model does not conclusively show that Trimble Navigation
will beat estimates this quarter. That is because a stock needs to
have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for
this to happen. That is not the case here as you will see below.
: Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 37 cents. Hence, the difference is 0.00%.
: Trimble Navigation's Zacks Rank #3 (Hold), when combined with a
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies, which you may want to consider as
our model shows that they have the right combination of elements to
post an earnings beat this quarter:
Charter Communications, Inc. (
), with Earnings ESP of +271.43% and a Zacks Rank #1 (Strong Buy)
Cognex Corporation (
), with Earnings ESP of +12.00% and a Zacks Rank #1
Semiconductor Manufacturing International Corp. (
), with Earnings ESP of +33.33% and a Zacks Rank #2 (Buy)
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TRIMBLE NAVIGAT (TRMB): Free Stock Analysis
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