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Trimble (TRMB) Q3 Earnings and Revenues Outpace Estimates

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Trimble Inc. (TRMB - Free Report) reported third-quarter 2021 non-GAAP earnings of 66 cents per share, which beat the Zacks Consensus Estimate by 11.9%. The bottom line improved 10% year over year but declined 8.3% sequentially.

The company’s revenues were $901.4 million, which surpassed the Zacks Consensus Estimate by 0.3%. Also, the figure was up 14% year over year. On a sequential basis, it decreased 4.6%.

The top line was driven by solid performance in machine control in civil construction, guidance in agriculture, and survey and mapping. Further, solid momentum across geospatial, and resources & utilities segments aided the results.

Top Line in Detail

Product revenues (accounting for 61% of revenues) totaled $551.2 million, up 19.5% on a year-over-year basis. Services revenues (18% of revenues) were $159.9 million, which decreased 0.5% year over year. Subscription revenues (21% of revenues), however, increased 11.9% from the year-ago quarter to $190.3 million.

Trimble Inc. Price, Consensus and EPS Surprise

Trimble Inc. Price, Consensus and EPS Surprise

Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote

Trimble operates under the following four organized segments.

Buildings and Infrastructure: The segment generated revenues of $349.7 million (accounting for 39% of total revenues), which increased 10.2% on a year-over-year basis.

Geospatial: This segment generated revenues of $205.4 million (23% of total revenues), which grew 24% from the prior-year quarter.

Resources and Utilities: This segment generated revenues of $184.8 million (21% of total revenues), which increased 23% from the prior-year quarter.

Transportation: The segment generated revenues of $161.5 million (accounting for 18% of total revenues), which improved 1.6% on a year-over-year basis.

Operating Details

For the third quarter, non-GAAP gross margin came in at 58.7%, contracting 10 basis points (bps) year over year.

As a percentage of revenues, adjusted EBITDA contracted 90 bps year over year to 25.9%.

On a non-GAAP basis, operating expenses accounted for 34.9% of revenues and expanded 30 bps from the year-ago quarter.

Consequently, non-GAAP operating margin came in at 23.8%, which contracted 40 bps year over year.

Balance Sheet & Cash Flow

At the end of third-quarter 2021, cash and cash equivalents were $513.2 million, up from $484.4 million at the end of second-quarter 2021.

Accounts receivables were reported at $580.5 million, which decreased from $583.2 million in the second quarter.

Total debt was $1.32 billion at third quarter-end compared with $1.38 billion at second quarter-end.

The company generated $166.4 million of cash from operations compared with $200.6 million in the second quarter.

Trimble generated free cash flow of $156.4 million for the reported quarter.

Guidance

For full-year 2021, Trimble expects revenues between $3.59 billion and $3.64 billion. The Zacks Consensus Estimate for 2021 revenues is pegged at $3.61 billion.

Also, the company anticipates non-GAAP earnings per share for 2021 in the range of $2.61-$2.69. The Zacks Consensus Estimate for 2021 earnings per share is pegged at $2.61.

Zacks Rank & Other Stocks to Consider

Currently, Trimble has a Zacks Rank #2 (Buy).

Other similar-ranked stocks in the broader technology sector include Advanced Micro Devices (AMD - Free Report) , PerkinElmer (PKI - Free Report) and Mimecast Limited (MIME - Free Report) . While Advanced Micro Devices sports a Zacks Rank #1 (Strong Buy), PerkinElmer and Mimecast carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Advanced Micro Devices, PerkinElmer, and Mimecast are currently projected at 46.2%, 41.7%, and 35%, respectively.