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Trimble's (NASDAQ: TRMB) third-quarter 2019 earnings were in line with analyst expectations. The company reported earnings per share (EPS) of $0.48, $0.01 higher than estimates by Zacks and $0.01 lower than the third quarter of 2018.
Despite the product developer's solid EPS, its revenue suffered in the third quarter. The company reported total revenue of $784.3 million, down $20.4 million from $804.7 million in the third quarter of 2018. This quarter's revenue fell short of analyst estimates of $807.83 million.
The company's operating income was down 3% year-over-year, dropping from $167 million in the third quarter of 2018 to $162 million in the third quarter of 2018.
Trimble's earnings release attributed the revenue miss to overall market conditions.
"Our third quarter revenue reflected prevailing market uncertainties, while earnings per share and cash flow exceeded expectations," said Steven Berglund, Trimble's president and CEO. "Although we anticipate market ambiguities to persist for the remainder of the year, we demonstrated the ability to control costs while continuing the transformation of our business model towards recurring revenue."
Operating cash flow for the first three quarters of 2019 was $462.8 million, up 20% as compared with the first three quarters of 2018, according to the earnings release. Deferred revenue for the third quarter of 2019 was $419 million, up 15% as compared with the third quarter of 2018.
Trimble's geospatial and resources and utilities segments were responsible for the bulk of its revenue loss. The company's geospatial segment reported revenue of $155.1 million, down 16% year-over-year. The resources and utilities segment posted revenue of $121.1 million, dropping a smaller 9% year-over-year.
The geospatial segment struggled last quarter as well. Company leaders attributed this to a year-over-year decline in original equipment manufacturer (OEM) sales.
The company's building and infrastructure and transportation segments fared better in the third quarter, but their gains were not as dramatic as the other segments' losses. Building and infrastructure posted revenue of $309.8 million, up 5% year-over-year. The transportation segment's revenue came in at $198.3 million, up 4% year-over-year.
Electronic logging device sales contributed to the company's transportation segment revenue.
For the fourth quarter of 2019, Trimble expects to report revenue between $770 million and $800 million and EPS of $0.46 to $0.50. For the fiscal year of 2019, Trimble expects to report revenue between $3.215 billion and $3.245 billion and EPS of $1.91 to $1.95.
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