We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Trimble (TRMB) Q4 Earnings and Revenues Outpace Estimates
Read MoreHide Full Article
Trimble Inc. (TRMB - Free Report) reported fourth-quarter 2021 non-GAAP earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line improved 1.6% year over year but declined 6.1% sequentially.
The company’s revenues were $926 million, which surpassed the Zacks Consensus Estimate by 4.1%. Also, the figure was up 11.6% year over year and 2.7% sequentially.
The top line was driven by an increase in product and subscription revenues. Further, solid momentum across buildings & infrastructure, geospatial, and resources & utilities segments aided the results. Additionally, the acquisition of AgileAssets added strength to Trimble’s portfolio of civil infrastructure software solutions. This remained a positive.
Yet, supply chain challenges remained a headwind for the company.
Product revenues (accounting for 61% of revenues) totaled $562 million, up 14.6% on a year-over-year basis. Subscription revenues (21%) increased 14.2% from the year-ago quarter to $198.9 million. Services revenues (18%) of $165.1 million were in line with the year-ago reported figure.
Trimble reports revenues on the basis of four types —
Hardware revenues (accounting for 45% of revenues) amounted to $418.4 million, up 20.2% year over year. Software revenues (16%) were $143.7 million, reflecting an improvement of 0.9% from the year-ago period. Recurring revenues (35%) increased 7.4% from the year-ago quarter to $322.3 million. Professional Service and Other revenues (4%) totaled $41.6 million, up 6.4% year over year.
Trimble operates under the following four organized segments —
Buildings and Infrastructure: The segment generated revenues of $365.1 million (accounting for 39% of total revenues), which increased 13.6% on a year-over-year basis. Despite continued supply chain challenges, revenue growth in civil construction was strong in all regions served. Also, growth in recurring software bookings in the software business remained a tailwind.
Geospatial: This segment generated revenues of $222.1 million (24% of total revenues), which grew 14.8% from the prior-year quarter. The growth was driven by continued strong demand across all major regions and end markets, partially offset by supply chain challenges.
Resources and Utilities: This segment generated revenues of $183.8 million (20% of total revenues), which increased 18.4% from the prior-year quarter. The increase in revenues was attributed to healthy agricultural markets. Also, strong growth in positioning services remained a positive. Yet, the segment revenues were affected by supply chain constraints.
Transportation: The segment generated revenues of $155 million (accounting for 17% of total revenues), which declined 2.9% on a year-over-year basis. The segment was severely impacted by supply chain constraints. Nonetheless, subscription growth resulted in increasing enterprise revenues. This remained a positive for the segment.
Operating Details
For the fourth quarter, non-GAAP gross margin came in at 57.8%, contracting 160 basis points (bps) year over year.
As a percentage of revenues, adjusted EBITDA contracted 200 bps year over year to 24.1%.
On a non-GAAP basis, operating expenses accounted for 35.8% of revenues and expanded 10 bps from the year-ago quarter.
Consequently, non-GAAP operating margin came in at 22.1%, which contracted 160 bps year over year.
Balance Sheet & Cash Flow
At the end of fourth-quarter 2021, cash and cash equivalents were $325.7 million, down from $513.2 million at the end of third-quarter 2021.
Accounts receivables were reported at $624.8 million, which increased from $580.5 million in the third quarter.
Total debt was $1.29 billion at fourth quarter-end compared with $1.32 billion at third quarter-end.
The company generated $155.3 million of cash from operations compared with $166.4 million in the third quarter.
Trimble generated free cash flow of $140.6 million for the reported quarter.
Guidance
For full-year 2022, Trimble expects revenues between $3.95 billion and $4.05 billion.
Also, the company anticipates non-GAAP earnings per share for 2022 in the range of $2.75-$2.95. The Zacks Consensus Estimate for 2022 earnings per share is pegged at $2.88.
Bruker is scheduled to release fourth-quarter 2021 results on Feb 11. It has gained 21.9% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 41.7% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 26% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Trimble (TRMB) Q4 Earnings and Revenues Outpace Estimates
Trimble Inc. (TRMB - Free Report) reported fourth-quarter 2021 non-GAAP earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.6%. The bottom line improved 1.6% year over year but declined 6.1% sequentially.
The company’s revenues were $926 million, which surpassed the Zacks Consensus Estimate by 4.1%. Also, the figure was up 11.6% year over year and 2.7% sequentially.
The top line was driven by an increase in product and subscription revenues. Further, solid momentum across buildings & infrastructure, geospatial, and resources & utilities segments aided the results. Additionally, the acquisition of AgileAssets added strength to Trimble’s portfolio of civil infrastructure software solutions. This remained a positive.
Yet, supply chain challenges remained a headwind for the company.
Trimble Inc. Price, Consensus and EPS Surprise
Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote
Top Line in Detail
Product revenues (accounting for 61% of revenues) totaled $562 million, up 14.6% on a year-over-year basis. Subscription revenues (21%) increased 14.2% from the year-ago quarter to $198.9 million. Services revenues (18%) of $165.1 million were in line with the year-ago reported figure.
Trimble reports revenues on the basis of four types —
Hardware revenues (accounting for 45% of revenues) amounted to $418.4 million, up 20.2% year over year. Software revenues (16%) were $143.7 million, reflecting an improvement of 0.9% from the year-ago period. Recurring revenues (35%) increased 7.4% from the year-ago quarter to $322.3 million. Professional Service and Other revenues (4%) totaled $41.6 million, up 6.4% year over year.
Trimble operates under the following four organized segments —
Buildings and Infrastructure: The segment generated revenues of $365.1 million (accounting for 39% of total revenues), which increased 13.6% on a year-over-year basis. Despite continued supply chain challenges, revenue growth in civil construction was strong in all regions served. Also, growth in recurring software bookings in the software business remained a tailwind.
Geospatial: This segment generated revenues of $222.1 million (24% of total revenues), which grew 14.8% from the prior-year quarter. The growth was driven by continued strong demand across all major regions and end markets, partially offset by supply chain challenges.
Resources and Utilities: This segment generated revenues of $183.8 million (20% of total revenues), which increased 18.4% from the prior-year quarter. The increase in revenues was attributed to healthy agricultural markets. Also, strong growth in positioning services remained a positive. Yet, the segment revenues were affected by supply chain constraints.
Transportation: The segment generated revenues of $155 million (accounting for 17% of total revenues), which declined 2.9% on a year-over-year basis. The segment was severely impacted by supply chain constraints. Nonetheless, subscription growth resulted in increasing enterprise revenues. This remained a positive for the segment.
Operating Details
For the fourth quarter, non-GAAP gross margin came in at 57.8%, contracting 160 basis points (bps) year over year.
As a percentage of revenues, adjusted EBITDA contracted 200 bps year over year to 24.1%.
On a non-GAAP basis, operating expenses accounted for 35.8% of revenues and expanded 10 bps from the year-ago quarter.
Consequently, non-GAAP operating margin came in at 22.1%, which contracted 160 bps year over year.
Balance Sheet & Cash Flow
At the end of fourth-quarter 2021, cash and cash equivalents were $325.7 million, down from $513.2 million at the end of third-quarter 2021.
Accounts receivables were reported at $624.8 million, which increased from $580.5 million in the third quarter.
Total debt was $1.29 billion at fourth quarter-end compared with $1.32 billion at third quarter-end.
The company generated $155.3 million of cash from operations compared with $166.4 million in the third quarter.
Trimble generated free cash flow of $140.6 million for the reported quarter.
Guidance
For full-year 2022, Trimble expects revenues between $3.95 billion and $4.05 billion.
Also, the company anticipates non-GAAP earnings per share for 2022 in the range of $2.75-$2.95. The Zacks Consensus Estimate for 2022 earnings per share is pegged at $2.88.
Zacks Rank & Stocks to Consider
Currently, Trimble has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector include Bruker (BRKR - Free Report) , Intuit (INTU - Free Report) and Zscaler (ZS - 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.
Bruker is scheduled to release fourth-quarter 2021 results on Feb 11. It has gained 21.9% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 41.7% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 26% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.