Trimble (TRMB) Scales A 52-Week High On Solid Execution

Shares of Trimble Navigation Ltd. (NASDAQ:TRMB) touched a new 52-week high of $26.56 on Jun 14, eventually closing at $26.28. The company returned 14.2% in the past one year and has added roughly 22.5% year to date. Average volume of shares traded over the last three months was approximately 1,190K.

What's Driving Trimble Navigation?

Trimble is an OEM of GPS-based products and control systems. The company’s solutions lead to better asset utilization and thereby increase the operational efficiency of its customers.

Trimble’s various initiatives, such as lowering of the cost structure, strategic acquisitions and agreements, product enhancements, international expansion and strong first-quarter results are some of the catalysts driving the stock.

TRIMBLE NAVIGAT Price and Consensus

In the first quarter, Trimble reported decent results, with revenues of $583.0 million increasing 4.2% sequentially and 0.1% year over year. Revenues also came above the Zacks Consensus Estimate of $581.0 million and were within the company’s guided range of $565–$595million. However, earnings missed the Zacks Consensus Estimate due to higher operating expenses associated with recent acquisitions.

Also, management provided a solid guidance for the second quarter of 2016. Revenues are expected in the range of $595–$625 million, while the Zacks Consensus Estimate stands at $602 million. The company’s Mobile Solutions segment is expected to continue benefiting from growth in Transportation and Logistics which is likely to improve further in 2016.

In addition, Trimble recently signed an agreement with Autodesk (NASDAQ:ADSK) to make its building process more efficient and productive. The tools used will enable engineers and contractors as well as project owners to reduce project costs and increase workflow efficiency. We believe this acquisition will extend Trimble’s capabilities in serving the construction sector and improve revenues.

Moreover, the company is making all efforts to reduce its expenses and focus on more growth areas. Last week, Trimble sold its Advanced Public Safety (APS) business to Aptean, a leading provider of mission critical enterprise software solutions headquartered in Alpharetta to tighten its focus on other important matters.

Additionally, Trimble delivered an average positive earnings surprise of 10.0% in the trailing four quarters backed by its robust business portfolio.

Trimble currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks that are performing well at current levels include Jason Industries, Inc. (NASDAQ:JASN) , Kopin Corporation (NASDAQ:KOPN) and Research Frontiers Inc. (NASDAQ:REFR) . Each of these stocks carries a Zacks Rank #2 (Buy).