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Trimble (TRMB) Q4 Earnings and Revenues Trump Estimates
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Trimble Inc. (TRMB - Free Report) reported fourth-quarter 2020 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 17.3%. Notably, the bottom line improved 1.7% sequentially and 15.1% year over year.
Per management, non-GAAP revenues were up 0.4% year over year to $830 million.
Further, the company’s GAAP revenues were $829.7 million, which surpassed the Zacks Consensus Estimate by 5.3%. Also, the figure was up 1% year over year.
The top line was driven by strength in overall demand environment. Further, strong segmental performance aided the results.
Product revenues (accounting for 59.1% of GAAP revenues) totaled $490.4 million, up 5.1% on a year-over-year basis. Services revenues (19.9% of revenues) were $165.1 million, down 10.5 % year over year. Subscription revenues (21% of revenues) improved 0.6% from the year-ago quarter to $174.2 million.
Its cost-control strategies are expected to drive profitability in the near term. Further, the company’s acquisition strategy remains a major positive and is likely to aid the stock to rebound in the long haul.
For the fourth quarter, non-GAAP gross margin came in at 59.4%, expanding 40 basis points (bps) year over year.
Adjusted operating expenses accounted for 35.7% of non-GAAP revenues, contracting 150 bps from the year-ago quarter. The decrease was due to structural actions and temporary factors associated with the COVID-19 pandemic.
Consequently, non-GAAP operating margin came in at 23.7%, which expanded 190 bps year over year.
Balance Sheet
At the end of fourth-quarter 2020, cash and cash equivalents were $237.7 million, up from $184 million at the end of third-quarter 2020. Inventories were $301.7 million, down from $318.5 million in the previous quarter.
Long-term debt was $1.29 billion at fourth quarter-end compared with $1.39 billion at third quarter-end.
Further, the company generated $188 million of cash from operations compared with $181 million in the third quarter.
Trimble generated free cash flow of $177 million for the reported quarter.
Guidance
For full-year 2021, it expects GAAP revenues in the range of $3.3-$3.4 billion and GAAP earnings within $1.31-$1.54 per share.
Non-GAAP revenues are expected in the range of $3.3-$3.4 billion and non-GAAP earnings per share within $2.25-$2.45.
Long-term earnings growth for Semtech, KLA Corp. and Garmin is currently projected at 12.5%, 11.6% and 6.8%, respectively.
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Trimble (TRMB) Q4 Earnings and Revenues Trump Estimates
Trimble Inc. (TRMB - Free Report) reported fourth-quarter 2020 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 17.3%. Notably, the bottom line improved 1.7% sequentially and 15.1% year over year.
Per management, non-GAAP revenues were up 0.4% year over year to $830 million.
Further, the company’s GAAP revenues were $829.7 million, which surpassed the Zacks Consensus Estimate by 5.3%. Also, the figure was up 1% year over year.
The top line was driven by strength in overall demand environment. Further, strong segmental performance aided the results.
Product revenues (accounting for 59.1% of GAAP revenues) totaled $490.4 million, up 5.1% on a year-over-year basis. Services revenues (19.9% of revenues) were $165.1 million, down 10.5 % year over year. Subscription revenues (21% of revenues) improved 0.6% from the year-ago quarter to $174.2 million.
Its cost-control strategies are expected to drive profitability in the near term. Further, the company’s acquisition strategy remains a major positive and is likely to aid the stock to rebound in the long haul.
Trimble Inc. Price, Consensus and EPS Surprise
Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote
Operating Details
For the fourth quarter, non-GAAP gross margin came in at 59.4%, expanding 40 basis points (bps) year over year.
Adjusted operating expenses accounted for 35.7% of non-GAAP revenues, contracting 150 bps from the year-ago quarter. The decrease was due to structural actions and temporary factors associated with the COVID-19 pandemic.
Consequently, non-GAAP operating margin came in at 23.7%, which expanded 190 bps year over year.
Balance Sheet
At the end of fourth-quarter 2020, cash and cash equivalents were $237.7 million, up from $184 million at the end of third-quarter 2020. Inventories were $301.7 million, down from $318.5 million in the previous quarter.
Long-term debt was $1.29 billion at fourth quarter-end compared with $1.39 billion at third quarter-end.
Further, the company generated $188 million of cash from operations compared with $181 million in the third quarter.
Trimble generated free cash flow of $177 million for the reported quarter.
Guidance
For full-year 2021, it expects GAAP revenues in the range of $3.3-$3.4 billion and GAAP earnings within $1.31-$1.54 per share.
Non-GAAP revenues are expected in the range of $3.3-$3.4 billion and non-GAAP earnings per share within $2.25-$2.45.
Zacks Rank & Key Picks
Trimble currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Semtech Corporation (SMTC - Free Report) , KLA Corporation (KLAC - Free Report) and Garmin Ltd. (GRMN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Semtech, KLA Corp. and Garmin is currently projected at 12.5%, 11.6% and 6.8%, respectively.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>