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Trimble (TRMB) Q2 Earnings Beat Estimates, Revenues Down Y/Y
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Trimble (TRMB - Free Report) delivered non-GAAP earnings of 62 cents per share in second-quarter 2024, surpassing the Zacks Consensus Estimate by 8.77% but declining 3.1% on a year-over-year basis.
Revenues of $870.8 million beat the Zacks Consensus Estimate by 1.16% but declined 12.4% year over year (1% up on an organic basis).
Product revenues (contributed 36.8% to total revenues) totaled $320.4 million, down 34.7% on a year-over-year basis. Subscription and services revenues (63.2% of total revenues) increased 9.4% year over year to $550.4 million.
TRMB generated annualized recurring revenues of $2.11 billion, which increased 12% on a year-over-year basis (up 14% on an organic basis).
AECO revenues (34.4% of total revenues) were $299.7 million, up 13.5% year over year.
The AECO (Architecture, Engineering, Construction, and Owners) segment delivered 18% growth in ARR, driven by a successful integration of products and innovative solutions like Trimble Unity and Trimble Connect. The SketchUp product surpassed 1 million subscribers, showcasing strong customer engagement.
Field Systems revenues (43.6% of total revenues) of $379.3 million fell 29.8% year over year. Despite a decline in revenues due to strong prior-year government-related sales, the segment registered 17% ARR growth. Key developments included strong performance in civil construction and automotive markets, along with new product launches.
T&L revenues (22% of total revenues) of $191.8 million surged 1.5% year over year. The segment exceeded top and bottom-line expectations with double-digit ARR growth from Transporeon and maps business. The new Instinct platform and video solutions contributed well.
In second-quarter 2024, the non-GAAP gross margin came in at 66.5%, expanding 220 basis points (bps) year over year.
On a non-GAAP basis, operating expenses accounted for 44.1% of revenues, up 320 bps year over year.
Non-GAAP operating margin came in at 22.3%, which contracted 90 bps year over year.
Balance Sheet
At the end of second-quarter 2024, cash and cash equivalents were $944.1 million, up from $255.1 million at the end of first-quarter 2024.
Total debt was $1.79 billion at the end of the second quarter compared with $3.03 billion at the first-quarter end.
Guidance
For third-quarter 2024, Trimble expects revenues in the range of $840-$880 million.
The company expects non-GAAP earnings to be between 58 cents and 64 cents per share.
For 2024, Trimble expects revenues to be between $3.59 billion and $3.67 billion. The company expects 2024 non-GAAP earnings to be between $2.67 and $2.81 per share.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
The company’s shares have underperformed the Zacks Computer & Technology sector year to date. The stock has declined 3.1% against the sector’s increase of 10.3%.
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Trimble (TRMB) Q2 Earnings Beat Estimates, Revenues Down Y/Y
Trimble (TRMB - Free Report) delivered non-GAAP earnings of 62 cents per share in second-quarter 2024, surpassing the Zacks Consensus Estimate by 8.77% but declining 3.1% on a year-over-year basis.
Revenues of $870.8 million beat the Zacks Consensus Estimate by 1.16% but declined 12.4% year over year (1% up on an organic basis).
Product revenues (contributed 36.8% to total revenues) totaled $320.4 million, down 34.7% on a year-over-year basis. Subscription and services revenues (63.2% of total revenues) increased 9.4% year over year to $550.4 million.
TRMB generated annualized recurring revenues of $2.11 billion, which increased 12% on a year-over-year basis (up 14% on an organic basis).
Trimble Inc. Price, Consensus and EPS Surprise
Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote
Quarter Details
AECO revenues (34.4% of total revenues) were $299.7 million, up 13.5% year over year.
The AECO (Architecture, Engineering, Construction, and Owners) segment delivered 18% growth in ARR, driven by a successful integration of products and innovative solutions like Trimble Unity and Trimble Connect. The SketchUp product surpassed 1 million subscribers, showcasing strong customer engagement.
Field Systems revenues (43.6% of total revenues) of $379.3 million fell 29.8% year over year. Despite a decline in revenues due to strong prior-year government-related sales, the segment registered 17% ARR growth. Key developments included strong performance in civil construction and automotive markets, along with new product launches.
T&L revenues (22% of total revenues) of $191.8 million surged 1.5% year over year. The segment exceeded top and bottom-line expectations with double-digit ARR growth from Transporeon and maps business. The new Instinct platform and video solutions contributed well.
In second-quarter 2024, the non-GAAP gross margin came in at 66.5%, expanding 220 basis points (bps) year over year.
On a non-GAAP basis, operating expenses accounted for 44.1% of revenues, up 320 bps year over year.
Non-GAAP operating margin came in at 22.3%, which contracted 90 bps year over year.
Balance Sheet
At the end of second-quarter 2024, cash and cash equivalents were $944.1 million, up from $255.1 million at the end of first-quarter 2024.
Total debt was $1.79 billion at the end of the second quarter compared with $3.03 billion at the first-quarter end.
Guidance
For third-quarter 2024, Trimble expects revenues in the range of $840-$880 million.
The company expects non-GAAP earnings to be between 58 cents and 64 cents per share.
For 2024, Trimble expects revenues to be between $3.59 billion and $3.67 billion. The company expects 2024 non-GAAP earnings to be between $2.67 and $2.81 per share.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
The company’s shares have underperformed the Zacks Computer & Technology sector year to date. The stock has declined 3.1% against the sector’s increase of 10.3%.
Some better-ranked stocks from the broader Computer and Technology sector are DigitalOcean (DOCN - Free Report) , Datadog (DDOG - Free Report) and Analog Devices (ADI - Free Report) . While DigitalOcean and Datadog sports a Zacks Rank #1 (Strong Buy), Analog Devices carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DigitalOcean’s shares have plunged 24.2% year to date. DOCN is set to report second-quarter 2024 results on Aug 8.
Datadog’s shares have plunged 13.1% year to date. DDOG is set to report its second-quarter 2024 results on Aug 8.
Analog Devices’ shares have gained 3.2% year to date. ADI is set to report third-quarter fiscal 2024 results on Aug 21.