By: Rob Wertheimer
Trimble’s 2018 investor day produced some incremental clarity on the financial output of the strategy; essentially targets that are close to consensus estimates. A positive is that sometime this year the company will begin to provide supplemental information using adjusted revenue, as Roper and others do, rather than just adjusted cost/op income. This is a substantial plus that will make more apparent an accounting driven drag on margins due to acquisitions. Acquisition accounting effectively flows through revenues from the acquired company with no margin (a bit like inventory step up in an acquired widget maker depresses profit).