Trimble Navigation Limited
) is set to report first-quarter 2014 results on May 6. Last
quarter, it posted a 21.2% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
Trimble Navigation delivered encouraging fourth quarter 2013
results with both the top and bottom lines exceeding the Zacks
Consensus Estimate. Revenues were primarily driven by strong
performance in the Engineering and Construction (E&C), Field
Solutions and Mobile Solutions (TMS) segments.
Moreover, Trimble is seeing much stronger construction markets
and a few of its businesses have started witnessing normal
seasonality. Also, Trimble has made a number of acquisitions in
the recent months, which are helping it to build a strong product
portfolio and position itself in markets with better growth
The company also launched several new products and solutions
that should help it increase penetration in existing markets and
expand into new ones. This, along with its improving end markets,
will boost its market share.
However, the company is experiencing softness in certain areas
of the business owing to macro concerns and the nature of the new
business acquired. Despite softness in some markets, Trimble's
solid portfolio (enhanced by acquisitions), strong market
position and strategic partnerships will continue to drive both
revenues and earnings over the next few quarters.
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
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 46 cents. Hence, the difference is 0.00%.
Trimble Navigation's Zacks Rank #2 (Buy), 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
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:
BLACKBERRY LTD (BBRY): Free Stock Analysis
INFINERA CORP (INFN): Free Stock Analysis
INTELIQUENT INC (IQNT): Free Stock Analysis
TRIMBLE NAVIGAT (TRMB): Free Stock Analysis
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), with Earnings ESP of +4.00% and a Zacks Rank #1 (Strong
) with Earnings ESP of +33.33% and a Zacks Rank #2 (Buy)
) with Earnings ESP of +21.43% and a Zacks Rank #2