This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Trimble Navigation (TRMB) Stock Is Down Today

NEW YORK (TheStreet) -- Trimble Navigation  (TRMB) plunged Wednesday after the GPS maker reported first-quarter results that came up short of analysts' expectations.

Net income increased year over year to $68.6 million, or 26 cents a share, from $49.8 million, or 19 cents a share. The company earned 39 cents a share, excluding items. Revenue increased 8.7% year over year to $604.7 million, which was short of the company's forecast of $610 million to $630 million.

Analysts expected Trimble to earn 42 cents a share on revenue of $618.2 million, according to Thomson Reuters I/B/E/S.

Must Read: Warren Buffett's 10 Favorite Growth Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The company also issued second-quarter guidance for adjusted profit of 38 cents a share to 42 cents a share and revenue of $605 million to $630 million. Analysts expected adjusted profit of 45 cents a share on revenue of $645.8 million.

The stock was down 15.22% to $32.36 at 11:45 a.m.

----------

Separately, TheStreet Ratings team rates TRIMBLE NAVIGATION LTD as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TRIMBLE NAVIGATION LTD (TRMB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • TRMB's revenue growth has slightly outpaced the industry average of 7.0%. Since the same quarter one year prior, revenues rose by 16.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TRIMBLE NAVIGATION LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TRIMBLE NAVIGATION LTD increased its bottom line by earning $0.84 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.74 versus $0.84).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 80.8% when compared to the same quarter one year prior, rising from $33.19 million to $60.00 million.
  • The gross profit margin for TRIMBLE NAVIGATION LTD is rather high; currently it is at 58.04%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.01% is above that of the industry average.
  • Net operating cash flow has increased to $136.23 million or 40.72% when compared to the same quarter last year. Despite an increase in cash flow, TRIMBLE NAVIGATION LTD's cash flow growth rate is still lower than the industry average growth rate of 63.65%.
  • You can view the full analysis from the report here: TRMB Ratings Report

STOCKS TO BUY: TheStreet's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,890.50 -21.61 -0.13%
S&P 500 1,977.54 +7.59 0.39%
NASDAQ 4,474.0380 +31.34 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs