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Trimble (TRMB) Q1 Earnings and Revenues Trump Estimates
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Trimble (TRMB - Free Report) reported first-quarter 2021 non-GAAP earnings of 66 cents per share that beat the Zacks Consensus Estimate by 17.9% and surged 34.7% year over year.
Non-GAAP revenues were up 11.7% year over year to $886.7 million and comfortably surpassed the consensus mark by 7.4%.
Annualized recurring revenues were $1.32 billion, up 9% year over year.
Top-Line Details
Product revenues (60.8% of revenues) totaled $539.4 million, up 16.3% year over year. Subscription revenues (20.8% of revenues) improved 11.3% from the year-ago quarter to $184.8 million.
However, Service revenues (18.3% of revenues) were $162.3 million, down 0.1% year over year.
Segment wise, Buildings and Infrastructure revenues (38.7% of revenues) increased 15.6% year over year to $343.1 million. Geospatial revenues (20.5% of revenues) were $181.7 million, up 24.3% year over year. Moreover, revenues from Resources and Utilities (23.1% of revenues) increased 13.8% year over year to $205.2 million.
However, Transportation revenues (17.7% of revenues) declined 8.1% year over year to $156.7 million.
Operating Details
Non-GAAP gross margin in first quarter came in at 58.4%, contracting 70 basis points (bps) year over year.
As percentage of revenues, adjusted operating expenses declined 400 bps to 34.8%. While research & development and sales & marketing expenses as percentage of revenues declined 30 bps and 280 bps, respectively, general & administrative expenses increased 40 bps on a year-over-year basis.
Adjusted EBITDA margin increased 340 bps year over year to 26.1%.
Non-GAAP operating margin came in at 23.6%, which expanded 330 bps year over year.
Segment wise, Buildings and Infrastructure operating margin surged 760 bps to 28.1%. Geospatial operating margin jumped 590 bps to 26.8% year over year. Moreover, Resources and Utilities operating margin expanded 190 bps on a year-over-year basis to 39%.
However, Transportation operating margin contracted 450 bps to 5.4%.
Balance Sheet
As of Mar 31, 2021 cash and cash equivalents were $264.6 million, up from $237.7 million as of Dec 31, 2020.
Trimble’s total debt was $1.39 billion as of Mar 31, 2021, down from $1.55 billion as of Dec 31, 2020.
Further, Trimble generated $228.2 million of cash from operations in the first quarter of 2021 compared with $188 million in the fourth quarter of 2020.
Moreover, Trimble generated free cash flow of $217.6 million for the reported quarter.
Guidance
For full-year 2021, Trimble expects non-GAAP revenues roughly in the range of $3.40-$3.50 billion and earnings within $2.30-$2.50 per share.
Synaptics, Agilent and NVIDIA are set to report their earnings results on May 6, 20 and 26, respectively.
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Trimble (TRMB) Q1 Earnings and Revenues Trump Estimates
Trimble (TRMB - Free Report) reported first-quarter 2021 non-GAAP earnings of 66 cents per share that beat the Zacks Consensus Estimate by 17.9% and surged 34.7% year over year.
Non-GAAP revenues were up 11.7% year over year to $886.7 million and comfortably surpassed the consensus mark by 7.4%.
Annualized recurring revenues were $1.32 billion, up 9% year over year.
Top-Line Details
Product revenues (60.8% of revenues) totaled $539.4 million, up 16.3% year over year. Subscription revenues (20.8% of revenues) improved 11.3% from the year-ago quarter to $184.8 million.
However, Service revenues (18.3% of revenues) were $162.3 million, down 0.1% year over year.
Trimble Inc. Price, Consensus and EPS Surprise
Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote
Segment wise, Buildings and Infrastructure revenues (38.7% of revenues) increased 15.6% year over year to $343.1 million. Geospatial revenues (20.5% of revenues) were $181.7 million, up 24.3% year over year. Moreover, revenues from Resources and Utilities (23.1% of revenues) increased 13.8% year over year to $205.2 million.
However, Transportation revenues (17.7% of revenues) declined 8.1% year over year to $156.7 million.
Operating Details
Non-GAAP gross margin in first quarter came in at 58.4%, contracting 70 basis points (bps) year over year.
As percentage of revenues, adjusted operating expenses declined 400 bps to 34.8%. While research & development and sales & marketing expenses as percentage of revenues declined 30 bps and 280 bps, respectively, general & administrative expenses increased 40 bps on a year-over-year basis.
Adjusted EBITDA margin increased 340 bps year over year to 26.1%.
Non-GAAP operating margin came in at 23.6%, which expanded 330 bps year over year.
Segment wise, Buildings and Infrastructure operating margin surged 760 bps to 28.1%. Geospatial operating margin jumped 590 bps to 26.8% year over year. Moreover, Resources and Utilities operating margin expanded 190 bps on a year-over-year basis to 39%.
However, Transportation operating margin contracted 450 bps to 5.4%.
Balance Sheet
As of Mar 31, 2021 cash and cash equivalents were $264.6 million, up from $237.7 million as of Dec 31, 2020.
Trimble’s total debt was $1.39 billion as of Mar 31, 2021, down from $1.55 billion as of Dec 31, 2020.
Further, Trimble generated $228.2 million of cash from operations in the first quarter of 2021 compared with $188 million in the fourth quarter of 2020.
Moreover, Trimble generated free cash flow of $217.6 million for the reported quarter.
Guidance
For full-year 2021, Trimble expects non-GAAP revenues roughly in the range of $3.40-$3.50 billion and earnings within $2.30-$2.50 per share.
Zacks Rank & Stocks to Consider
Trimble currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Synaptics (SYNA - Free Report) , Agilent Technologies (A - Free Report) and NVIDIA (NVDA - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Synaptics, Agilent and NVIDIA are set to report their earnings results on May 6, 20 and 26, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>