Trimble and GPS Earnings... No Bust, No Boom (TRMB, GRMN)

Trimble Navigation Limited (NASDAQ: TRMB) is seeing some mixed reaction after earnings offer no major boom nor a major bust for the world of global positioning companies and the new competition of free apps that can be input into smartphones.  The GPS player posted non-GAAP earnings of $0.21 EPS on revenue of $277.5 million.  Thomson Reuters had estimates of $0.21 EPS and $268.64 million in revenues.  This was down from $0.24 non-GAAP EPS and up about 4% in revenues year over year.  There are some concerns here that guidance is not above estimates, and this is what traders may try to use for inflection in Garmin Ltd. (NASDAQ: GRMN) after all the fears that have been brought in by Google and Apple as Garmin replacements.

For the next quarter, Trimble sees first quarter non-GAAP earnings of $0.30 to $0.32 EPS and revenues of $308 to $313 million in revenues.  Thomson Reuters has estimates of $0.33 EPS and $308.14 million in revenues… The same quarter revenues from a year ago were $288.95 million.

We do now have a closer comparison for a year over year change.  For the full year 2009, full year non-GAAP operating income of $172.1 million was down 32% from 2008. Full year 2009 non-GAAP operating margin was 15.3% versus 19.0% in 2008.  Trimble’s revenue was $1.13 billion, down about 15% from 2008.  Cash flow from operations for the full year 2009 was $194.6 million, as compared to $176.1 million in 2008.

Today’s numbers might not spell major disaster in the world of global positioning systems nor potentially that of personal navigation devices, but it is no longer showing the great expectations previously sought.  It is also not an apples-to-apples comparison between these two companies, but that is what traders have tried to use for some time in making inferences and references.  Unless there are nasty surprises in the conference call, today’s news is unlikely to move the needle on Garmin Ltd. (NASDAQ: GRMN).

Trimble shares closed up 0.25% at $23.27 and shares are trading at $23.15 in the after-hours session.  The 52-week range is $11.96 to $26.17.

JON C. OGG