Analytics and software firm Trimble forecast second-quarter results below Wall Street estimates on Friday, hit by sluggish demand for its products and services, sending its shares down about 5%.
Amid high input costs and interest rates, clients are
rethinking their spending priorities, hurting the field system and software
segments.
The company provides hardware and software solutions which
are used across industries including agriculture, transportation and
construction, and assists in designing and building roads and bridges used by
truckers.
Westminster, Colorado-based company forecast second-quarter
revenue between $845 million and $875 million, compared with analysts' average
estimates of $881 million, according to LSEG data.
Its expects adjusted earnings per share (EPS) to be between
56 cents to 60 cents per share, below estimates of 61 cents.
"Transportation revenues and organic growth will be
modestly lower in the second quarter, primarily reflecting reduced low-margin
hardware sales in our North American mobility business," said Phil
Sawarynski, the company's newly named finance chief.
Trimble's field systems segment, which primarily includes
hardware businesses, fell 12% to $419.2 million.
The company reported first-quarter adjusted EPS of 64 cents,
compared with estimates of 62 cents per share.
The company's first-quarter revenue stood at $953.3 million,
beating analysts' estimates of $912.5 million.
Last month, AGCO Corporation and Trimble announced the
closing of their joint venture transaction known as PTx Trimble, which combines
Trimble's precision agriculture business and AGCO's JCA Technologies. Reuters
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