Shares of Sunnyvale, Calif.-based Trimble tumbled more than 8 percent early on May 1 after announcing forward guidance on earnings that missed Wall Street’s expectations.
Although its earnings per share for the first quarter was in line with the average prediction of 38 cents per share on Yahoo Finance, Trimble’s forward-looking statement of between $570 million and $580 million and non-GAAP earnings per share of $0.36 to $0.38 for the second quarter fell below the estimate of $597.1 million and 40 cents per share and Yahoo Finance.
Steven W. Berglund, Trimble’s president and chief exectutive officer, said the company expects business to pick up in the third and fourth quarters this year.
"Our revenue growth in the quarter did not meet our expectation. While our original expectation anticipated conservative buying behavior by our users as a result of economic uncertainties, we were further impacted by the direct and indirect effects of the U.S. sequester and severe weather conditions in Europe and North America, which delayed both the agricultural and construction seasons," Berglund said. "In spite of the pressure on revenue, we maintained … operating margins close to twenty percent and increased our … gross margin compared to the first quarter of 2012. We do not believe the fundamentals of our markets have changed and our long term expectations remain unchanged. While we are cautious about second quarter prospects, we currently anticipate improved organic growth in the second half of 2013."
At 10 a.m. on May 1, Trimble’s stock was down $2.45 to $26.29.