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UPDATE 1-Trimble Navigation results miss Street as farm product sales fall
May 6, 2014 / 10:42 PM / 3 years ago

UPDATE 1-Trimble Navigation results miss Street as farm product sales fall

(Adds CEO quote, analyst comments, background; updates shares)

By Abhirup Roy

May 6 (Reuters) - Navigation software maker Trimble Navigation Ltd’s quarterly profit missed analysts’ expectations as a severe winter in North America hurt sales of its agriculture-related products.

Trimble also forecast second-quarter adjusted profit of 38-42 cents per share, below average analysts’ estimate of 45 cents per share.

The company, which makes surveying, mapping, and marine navigation equipment and software based on global positioning data, said it expects revenue of $605 million-$630 million. Analysts were expecting $645.8 million.

Trimble shares fell 10 percent at $34.35 in extended trading on Tuesday.

“In the short term, we anticipate some volatility in agriculture,” Chief Executive Steven Berglund said in a statement on Tuesday.

Trimble’s farm products include software that helps farmers manage resources, such as water, and monitor yield.

“There is a lot of competition for connected farm solutions from the likes of Deere and Monsanto,” MKM Partners analyst Ian Ing told Reuters.

“That’s really what is weighing on the results and guidance.”

Revenue in Trimble’s field solutions business fell 6 percent to $138.2 million.

Total revenue rose 8.7 percent to $604.7 million, below the company’s forecast of $610 million-$630 million.

Net income rose to $68.6 million, or 26 cents per share, in the first quarter from $49.8 million, or 19 cents per share, a year earlier.

Excluding items, the company earned 39 cents per share.

Analysts on average had expected the company to earn 42 cents per share on revenue of $618.2 million, according to Thomson Reuters I/B/E/S.

Trimble shares had risen nearly 15 percent since its February forecast through Tuesday’s close. (Reporting by Abhirup Roy in Bangalore; Editing by Joyjeet Das)

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