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Trimble (TRMB) Q4 Earnings & Revenues Miss Estimates, Fall Y/Y
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Trimble Inc. (TRMB - Free Report) reported fourth-quarter 2022 non-GAAP earnings of 60 cents per share, which missed the Zacks Consensus Estimate by 1.6%. Further, the bottom line decreased 3.2% from the year-ago quarter’s figure.
TRMB’s revenues of $856.5 million missed the Zacks Consensus Estimate by 1.8%. Also, the figure was down 7.5% year over year.
The top-line decrease was attributed to weak momentum across Building and Infrastructure, Geospatial, and Transportation segments.
Softening demand in Europe, macroeconomic headwinds, and supply-chain constraints remained overhangs.
TRMB generated annualized recurring revenues of $1.60 billion in the reported quarter, which increased 14% on a year-over-year basis.
Product revenues (accounting for 54% of total revenues) totalled $462 million, down 17.8% on a year-over-year basis. Subscription revenues (27%) increased 15.9% from the year-ago quarter’s level to $230.6 million. Services revenues (19%) of $163.9 million dipped 0.7% from the year-ago quarter’s reported figure.
Trimble operates under the following four organized segments:
Buildings and Infrastructure: The segment generated revenues of $350.2 million (accounting for 41% of total revenues), which decreased 4.1% on a year-over-year basis.
Geospatial: This segment generated revenues of $171.1 million (20% of total revenues), which fell 23% from the prior-year quarter’s level. The segment was affected by reduced end-market demand and supply-chain constraints.
Resources and Utilities: This segment generated revenues of $185.2 million (22% of total revenues), up 0.8% from the prior-year quarter’s level. Higher revenues were attributed to strong growth in positioning services, utilities and forestry businesses remained positive.
Transportation: The segment generated revenues of $150 million (accounting for 17% of total revenues), which dropped 3.2% on a year-over-year basis.
Operating Details
For the fourth quarter, the non-GAAP gross margin came in at 61.8%, expanding 400 basis points (bps) year over year.
On a non-GAAP basis, operating expenses accounted for 39.8% of revenues and expanded 400 bps from the year-ago quarter’s figure.
Non-GAAP operating margin came in at 21.9%, which contracted 20 bps year over year.
Balance Sheet
At the end of fourth-quarter 2022, cash and cash equivalents were $271 million, down from $308.7 million at the end of third-quarter 2022.
Accounts receivables were $643.3 million in the reported quarter, increasing from $566.1 million in the prior quarter.
Total debt was $1.52 billion at the fourth-quarter end compared with $1.59 billion at the third-quarter end.
Guidance
For 2023, Trimble expects revenues between $3.7 billion and $3.8 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $3.89 billion.
Trimble 2023 non-GAAP earnings per share are anticipated within $2.66-$2.86. The Zacks Consensus Estimate for the same is pegged at $2.90 per share.
Management expects its non-GAAP tax rate to be 18% for 2023.
Agilent Technologies is set to report its first-quarter fiscal 2023 results on Feb 28. The Zacks Consensus Estimate for Agilent’s earnings is pegged at $1.31 per share, suggesting an increase of 8.3% from the prior-year period’s reported figure. Agilent has gained 9% in the past year.
Arista Networks is scheduled to release its fourth-quarter 2022 results on Feb 13. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.21 per share, suggesting an increase of 47.6% from the prior-year quarter’s reported figure. ANET has gained 7.4% in the past year.
Endava is scheduled to release its second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.9% from the prior-year quarter’s reported figure. DAVA has lost 18.5% in the past year.
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Trimble (TRMB) Q4 Earnings & Revenues Miss Estimates, Fall Y/Y
Trimble Inc. (TRMB - Free Report) reported fourth-quarter 2022 non-GAAP earnings of 60 cents per share, which missed the Zacks Consensus Estimate by 1.6%. Further, the bottom line decreased 3.2% from the year-ago quarter’s figure.
TRMB’s revenues of $856.5 million missed the Zacks Consensus Estimate by 1.8%. Also, the figure was down 7.5% year over year.
The top-line decrease was attributed to weak momentum across Building and Infrastructure, Geospatial, and Transportation segments.
Softening demand in Europe, macroeconomic headwinds, and supply-chain constraints remained overhangs.
TRMB generated annualized recurring revenues of $1.60 billion in the reported quarter, which increased 14% on a year-over-year basis.
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 54% of total revenues) totalled $462 million, down 17.8% on a year-over-year basis. Subscription revenues (27%) increased 15.9% from the year-ago quarter’s level to $230.6 million. Services revenues (19%) of $163.9 million dipped 0.7% from the year-ago quarter’s reported figure.
Trimble operates under the following four organized segments:
Buildings and Infrastructure: The segment generated revenues of $350.2 million (accounting for 41% of total revenues), which decreased 4.1% on a year-over-year basis.
Geospatial: This segment generated revenues of $171.1 million (20% of total revenues), which fell 23% from the prior-year quarter’s level. The segment was affected by reduced end-market demand and supply-chain constraints.
Resources and Utilities: This segment generated revenues of $185.2 million (22% of total revenues), up 0.8% from the prior-year quarter’s level. Higher revenues were attributed to strong growth in positioning services, utilities and forestry businesses remained positive.
Transportation: The segment generated revenues of $150 million (accounting for 17% of total revenues), which dropped 3.2% on a year-over-year basis.
Operating Details
For the fourth quarter, the non-GAAP gross margin came in at 61.8%, expanding 400 basis points (bps) year over year.
On a non-GAAP basis, operating expenses accounted for 39.8% of revenues and expanded 400 bps from the year-ago quarter’s figure.
Non-GAAP operating margin came in at 21.9%, which contracted 20 bps year over year.
Balance Sheet
At the end of fourth-quarter 2022, cash and cash equivalents were $271 million, down from $308.7 million at the end of third-quarter 2022.
Accounts receivables were $643.3 million in the reported quarter, increasing from $566.1 million in the prior quarter.
Total debt was $1.52 billion at the fourth-quarter end compared with $1.59 billion at the third-quarter end.
Guidance
For 2023, Trimble expects revenues between $3.7 billion and $3.8 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $3.89 billion.
Trimble 2023 non-GAAP earnings per share are anticipated within $2.66-$2.86. The Zacks Consensus Estimate for the same is pegged at $2.90 per share.
Management expects its non-GAAP tax rate to be 18% for 2023.
Zacks Rank & Stocks to Consider
Currently, Trimble has a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Agilent Technologies (A - Free Report) , Arista Networks (ANET - Free Report) and Endava (DAVA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent Technologies is set to report its first-quarter fiscal 2023 results on Feb 28. The Zacks Consensus Estimate for Agilent’s earnings is pegged at $1.31 per share, suggesting an increase of 8.3% from the prior-year period’s reported figure. Agilent has gained 9% in the past year.
Arista Networks is scheduled to release its fourth-quarter 2022 results on Feb 13. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.21 per share, suggesting an increase of 47.6% from the prior-year quarter’s reported figure. ANET has gained 7.4% in the past year.
Endava is scheduled to release its second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.9% from the prior-year quarter’s reported figure. DAVA has lost 18.5% in the past year.