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Trimble Inc. TRMB delivered second-quarter 2018 non-GAAP earnings of 50 cents per share, which surpassed the Zacks Consensus Estimate by 5 cents. The figure also increased 31.6% on a year-over-year basis and 13.6% sequentially.
Revenues increased 19% year over year and 5.8% on a sequential basis to $785.5 million. Moreover, the figure outpaced the Zacks Consensus Estimate of $772 million.
Growth in revenues was driven by strong performance of segments. Further, the company witnessed robust organic growth of 12%. Moreover, acquisitions contributed 5% to top-line growth.
Product revenues (67.6% of revenues) came in $531 million, up 19.2% on a year-over-year basis and 6.7% sequentially. Services revenues (17.3% of revenues) came in $136.1 million, up 21.6% year over year and 5.7% on a sequential basis. Subscription revenues (15.1% of revenues) increased 15.4% from the year-ago quarter and 2.4% sequentially to $118.4 million.
In the second quarter, Trimble’s solutions portfolio expanded with the launch of non-revenue water (NRW) solution, advanced 4G LTE Wireless Data Recorders, TSC7 Controller — a new field solution and Forensics SX10 Solution.
Last month, the company completed the acquisition of Viewpoint. The deal will add strength to the company’s Buildings and Infrastructure segment.
Moreover, the company continues to witness strong performance by the combination of e-Builder, Viewpoint and existing Trimble construction software.
Notably, the share price of Trimble has increased 15.35% since its earnings release. This can primarily be attributed to strong quarterly results, operational efficiency and improved full-year outlook.
Coming to price performance, the stock has returned 7.7% over a year, underperforming the industry’s rally of 10.1%.
Segments in Detail
Trimble operates in four organized segments: Buildings and Infrastructure, Geospatial, Resources and Utilities and Transportation segments.
Buildings and Infrastructure: This segment generated $274.3 million sales, accounting for 34.9% of the total revenues, growing 24.3% on a year-over-year basis. The company witnessed organic growth of 15% within this segment. Notably, benefits from acquisitions of e-Builder accelerated sales in this segment. Further, migration of SketchUp to a SaaS business model remained positive throughout the quarter.
Geospatial: Sales from this segment were $184.4 million, accounting for 23.5% of total revenues. The figure increased 12%, compared with the year-ago quarter. The segment witnesses 10% organic growth in the reported quarter.
Resources and Utilities: The segment generated sales of $145 million, accounting for 18.5% of total revenues. The figure was up 29.9% on a year-over-year basis. This segment also grew 10% organically. Growth in this segment was driven by the company’s improving performance in agriculture market. Moreover, the geographical diversity in Trimble’s agricultural business, especially outside of the United States remained positive.
Transportation: Sales from this segment went up 11.5% to $181.8 million, accounting for 23.1% of total revenues. The company experienced positive contributions from ALK Technologies, which contributed well to the results of this segment. Nevertheless, this segment witnessed 10% organic growth during the second quarter.