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Trimble Unveils Solutions for Connected Forest Initiative

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Trimble (TRMB - Free Report) recently released Connected Forest Xchange (CFX) and Connected Forest Business (CFB) Software-as-a-Service (SaaS) solutions in a bid to bolster its Connected Forest portfolio.

The new solutions will help forestry companies automate collection and sharing of real-time data, thus enhancing their efficiency and productivity.

The solutions, CFX and CFB, are essential to Trimble’s Connected Forest initiative, which is targeted to aid forestry companies in managing the lifecycle of raw materials and improve their decision-making process. It will also benefit forestry companies in settling financial transactions.

Moreover, the solution will support industry collaboration with trading partners by providing a single source for sharing critical business data. 

Trimble Inc. Price and Consensus

Trimble Inc. Price and Consensus | Trimble Inc. Quote

Product in Details

The CFX solution benefits forestry companies by providing them real-time information regarding log loading and load information. Moreover, wood supply stakeholders can also monitor transportation in real-time.

The real-time information will contribute to the improvement of operational processes at forestry companies and, in turn, improve their bottom line.

The CFB solution will aid in management of financial contracts and information for the forestry business. Per reports, forestry companies have been ramping up efforts to deploy digital technologies in their business, which is expected to aid in increasing yield and productivity.  

The release of the two SaaS solutions will help Trimble cater to growing demand for an end-to-end ecosystem for forestry supply chain management. The company’s robust connected forest portfolio and strong data management capabilities are key catalysts.

Bottom Line

Trimble shares have underperformed in the past year, having lost 18.9% compared with the industry’s decline of 17.9%.

 

Weakness in Buildings and Infrastructure segment in the last-reported quarter dragged down shares. Moreover, the transition of Chinese customers from the United States to Brazil to make agricultural product purchases is a major headwind.

Trimble faces competition in all its end markets. Considering the growing adoption of GPS-based systems and under-penetration in its served markets, the company could see an increase in the number of new competitors, which is expected to affect its top line in the near term.

However, Trimble has been following the inorganic path to boost its connected forest and forest management solutions. Notably, acquisitions have helped Trimble to build a comprehensive portfolio, enter new markets and generate additional revenues.

The acquisition of BOS Forestry in 2017 was a strategic fit for Trimble’s Connected Forest solutions that provide full raw materials lifecycle management and are expected to boost the company’s forestry division. Moreover, the company also acquired Savcor Oy’s forestry business and Silvadata in 2017.

Additionally, the company’s well-diversified product portfolio is expected to aid its performance and serve customers better.

Zacks Rank & Stocks to Consider

Currently, Trimble carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader computer and technology sector include Verint Systems Inc. (VRNT - Free Report) , Twitter, Inc. and Cloudera, Inc. . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Expected long-term earnings growth rate for Verint, Twitter and Cloudera are 10%, 22.1% and 8%, respectively.

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