Trimble Reports Third Quarter 2017 Results

Trimble third quarter revenue was up 15% from the previous year, with increases in all market segments.

Trimble Inc. has announced financial results for the third quarter of 2017.

Third Quarter of 2017 Financial Summary

Third quarter 2017 revenue of $670.0 million was up 15% as compared to the third quarter of 2016. Buildings and Infrastructure revenue was $214.5 million, up 13%. Geospatial revenue was $169.7 million, up 6%. Resources and Utilities revenue was $114.4 million, up 31%. Transportation revenue was $171.4 million, up 16%.

GAAP operating income was $64.0 million, up 16% as compared to the third quarter of 2016. GAAP operating margin was 9.6% of revenue as compared to 9.5% of revenue in the third quarter of 2016.

GAAP net income was $55.7 million, up 42% as compared to the third quarter of 2016. Diluted GAAP earnings per share were $0.22 as compared to diluted GAAP earnings per share of $0.15 in the third quarter of 2016.

Non-GAAP operating income of $123.6 million was up 12% as compared to the third quarter of 2016. Non-GAAP operating margin was 18.4% of revenue as compared to 19.0% of revenue in the third quarter of 2016.

Non-GAAP net income of $99.6 million was up 19% as compared to the third quarter of 2016. Diluted non-GAAP earnings per share were $0.39 as compared to diluted non-GAAP earnings per share of $0.33 in the third quarter of 2016.

The GAAP tax rate for the quarter was 20% as compared to 25% in the third quarter of 2016, and the non-GAAP tax rate was 23% as compared to 24% in the third quarter of 2016. 

Operating cash flow for the first three quarters of 2017 was $310.0 million, up 8% as compared to the first three quarters of 2016. Deferred revenue for the third quarter of 2017 was $326.7 million, up 11% as compared to the third quarter of 2016.

During the third quarter, Trimble completed the acquisitions of Müller-Elektronik and 10-4 Systems. Trimble also repurchased approximately 2.2 million shares of its common stock for $84 million, and year to date has repurchased approximately 3.1 million shares for $111 million. Approximately $19 million remains under the current share repurchase authorization as of the end of the third quarter.

"The quarter reflected relative strength across all segments and all regions. Organic revenue growth was over 10% and was augmented by acquisition activity," says Steven W. Berglund, Trimble's President and Chief Executive Officer. "These performance levels provide a foundation for continuing the positive trend into 2018."

Forward Looking Guidance

For the fourth quarter of 2017, Trimble expects revenue to be between $655 million and $685 million with GAAP earnings per share of $0.16 to $0.20 and non-GAAP earnings per share of $0.34 to $0.38. Non-GAAP guidance excludes the amortization of intangibles of $40 million related to previous acquisitions, anticipated acquisition costs of $3 million, the anticipated impact of stock-based compensation expense of $21 million, and $2 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 16% and non-GAAP guidance assumes a tax rate of 23%. Both GAAP and non-GAAP earnings per share assume approximately 258 million shares outstanding.

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