Navigation equipment maker Trimble lifts annual forecast as recurring revenue hits record high

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(Reuters) -Trimble raised its annual earnings forecast after surpassing quarterly estimates on Wednesday, benefitting from its strategy to bundle its navigation equipment with software for industries such as construction and transportation.

The company also reported a record-high annual recurring revenue in the third quarter.

The Westminster, Colorado-based company has integrated its navigation equipment with software solutions that gather data, analyze it and provide actionable insights, helping clients streamline their workflows.

CEO Rob Painter said the strategy “continues to deliver competitive differentiation and compelling growth”.

The company develops navigation solutions for the geospatial, agriculture and transportation industries.

It reported an annual recurring revenue of $2.31 billion in the quarter, beating analysts’ average estimate of $2.29 billion, according to data compiled by LSEG.

The company now expects annual revenue to be between $3.55 billion and $3.59 billion, up from its previous forecast of $3.48 billion and $3.56 billion.

It also raised its annual adjusted profit forecast to between $3.04 and $3.12 per share, from $2.90 to $3.06 per share.

Quarterly revenue rose 3% to $901.2 million, beating estimates of $870.3 million. Adjusted profit of 81 cents per share beat estimates of 72 cents per share.

Its shares were marginally up in early trading.

(Reporting by Anhata Rooprai in Bengaluru; Editing by Vijay Kishore)