GPS navigation maker Trimble forecasts downbeat quarterly results

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(Reuters) – 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.

(Reporting by Priyanka.G in Bengaluru; Editing by Vijay Kishore)