It has been about a month since the last earnings report for Trimble Navigation (TRMB Quick QuoteTRMB - Free Report) . Shares have added about 2.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Trimble due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Trimble Q1 Earnings and Revenues Trump Estimates

Trimble 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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

Currently, Trimble has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Trimble has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.