Trimble Earnings... a Prelude to Garmin? (TRMB, GRMN)

Trimble Navigation Limited (NASDAQ: TRMB) is a very different company than Garmin Ltd. (NASDAQ: TRMB).  Trimble offers advanced positioning product solutions to commercial and government users.  Garmin is the GPS provider that is one your dashboard your car or on at least one person’s that you know personally.  Trimble gave earnings after the close, and some will try use it to gauge Garmin’s earnings next week.

Trimble posted a 23% drop in revenue of $290.1 million on a year-over-year basis, and earnings came in at  non-GAAP net income of $37.4 million or $0.31 non-GAAP EPS.  This income figure is down 39% from the same quarter in 2008 on a nominal basis.  Thomson Reuters had estimates at $0.32 EPS and $300.2 million in revenues.

Operating income for the second quarter was down 54% to $28.7 million, while operating margin in the second quarter was 9.9% (down from 16.7% a year ago).

The company did offer guidance.  For the third quarter of 2009, Trimble sees non–GAAP EPS of $revenues of $275 million plus or minus 5%, or an implied range of $261.25M to $288.75M. At the mid-point it sees non-GAAP earnings of $0.25 EPS.  The estimates for Thomson Reuters is $0.27 EPS and $280.3 million in revenues.

Trimble may have been “good enough” before, but after a 100% recovery from lows shares are off 4% to $20.43 in the after-hours session after closing down 0.55% at $21.32 in regular trading.  Garmin is trading lower in the after-hours session, but not to the same extent.  Garmin stock closed down 0.77% at $27.21 today and its after-hours trading looks down around $27.10.

European rival TomTom reported last week, and the declines are being seen there as well.  Its shares have held up since reporting earnings.

JON C. OGG
JULY 28, 2009