Trimble Inc. (NASDAQ: TRMB) reported on February 6 that fourth quarter non-GAAP revenue increased 13 percent year-over-year (Y/Y) from $701.1 million in the fourth quarter of 2017 to $792.9 million in 2018. While this was a significant increase, Trimble missed consensus revenue expectations of $809.43 million by 2 percent, or $16.53 million according to Seeking Alpha.
Trimble Inc. is a Sunnyvale, California-based developer of global navigation satellite system receivers, laser rangefinders, unmanned aerial vehicles, inertial navigation systems and software processing tools.
Quarterly non-GAAP operating income income increased 43 percent Y/Y to $171.9 million from $120.1 million in the fourth quarter of 2017. The non-GAAP operating margin was 21.7 percent, an increase of roughly 27 percent Y/Y. Non-GAAP net income increased by 31 percent Y/Y, resulting in diluted earnings per share (EPS) of $0.48, beating consensus EPS estimates of $0.46 per share by two cents. Quarterly EPS increased by almost 30 percent, or $0.11, Y/Y from $0.37 in 2017.
“Our robust quarterly results closed a record year for Trimble. Revenue growth was aided by the strong performance of recent acquisitions, which are outperforming expectations,” said Steven W. Berglund, Trimble’s president and chief executive officer. “Operating margins reflected notable expansion, driven by high operating leverage. Despite the potential effects of trade conflicts and some regional concerns, we remain confident about the potential for 2019 and beyond.”
According to its quarterly report, Trimble’s quarterly revenue from its buildings and infrastructure business segment increased by 40 percent to $287 million for the quarter. The geospatial business segment’s revenue increased by 2 percent to $178.8 million. The resources and utilities business segment’s revenue decreased by 2 percent, down to $130.1 million. The transportation business segment’s revenue increased by 4 percent to $197 million.
Trimble also repurchased roughly 1.1 million shares of its common stock for $40 million.
Trimble’s guidance for the first quarter of 2019 predicts non-GAAP revenue of $795 million to $820 million, with EPS of $0.44 to $0.48.