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Will Trimble (TRMB) Miss Earnings Estimates?

Zacks Equity Research

Trimble Navigation Limited (TRMB) is set to report third quarter 2013 results on Oct 31. Last quarter it posted a 0.00% surprise. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

Trimble Navigation’s  second-quarter 2013 earnings of 35 cents beat the Zacks Consensus Estimate by a penny.

Trimble’s second-quarter revenues of $576.3 million were up 3.6% sequentially and 11.3% year over year, within the guided range of $575–$580 million. Strengthening U.S. commercial and residential construction markets helped Trimble’s business in the last quarter. Trimble has also made a number of acquisitions in the recent months, which are helping it to build a strong product portfolio and position itself in markets with better growth prospects.

Management expects third-quarter revenues in the range of $555–$565 million. Earnings on a non-GAAP basis are expected to be in the range of 36 cents-38 cents per share.

Earnings Whispers?

Our proven model does not conclusively show that Trimble is likely to beat earnings estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP:  That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 33 cents. Hence, the difference is 0.00%.

Zacks Rank #3 (Hold): Trimble’s Zacks Rank #3 when combined with an ESP of 0.00% makes surprise prediction difficult. We caution against stocks with Zacks #4 and #5 Ranks (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Arrow Electronics (ARW), Earnings ESP of +0.83% and a Zacks Rank #2 (Buy)

Asml Holding NV (ASML), Earnings ESP of +1.63% and Zacks Rank #3 (Hold)    

Jarden Corp (JAH), Earnings ESP of +2.00% and a Zacks Rank #1 (Strong Buy)

Read the Full Research Report on ARW
Read the Full Research Report on JAH
Read the Full Research Report on A^SML
Read the Full Research Report on TRMB

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