Back to top

Image: Bigstock

Trimble (TRMB) Boosts Utility Business With Unity AMS Solution

Read MoreHide Full Article

Trimble (TRMB - Free Report) has unveiled Trimble Unity AMS, an enterprise asset management solution for electric utilities worldwide.

Notably, the new solution, which is based on Trimble's Cityworks platform, has been designed to enable electric utilities to boost their productivity and reduce costs while delivering resilient energy.

Further, it allows utilities to manage the complete lifecycle of their asset infrastructure. It also provides an extensible platform that can integrate with other systems of record to boost efficiency.

Additionally, the solution offers a centralized source of data for decision-making and operations, thus addressing challenges faced by electric utilities, such as aging infrastructure, environmental challenges, organizational complexity and inefficient processes.

The latest move has added strength to the company’s Resources and Utilities segment offerings. This in turn is likely to contribute to the performance of the segment in the days ahead.

In the fourth quarter of 2022, the segment generated revenues of $185.2 million, which accounted for 22% of total revenues. This figure was up 1% from the prior-year quarter’s level.

Growth Prospects

The latest move of the company positions it well to capitalize on the growth prospects present in the enterprise asset management market.

Per a report from Grand View Research, the enterprise asset management market is expected to witness a CAGR of 34.7% from 2023 to 2030.

According to a report from MarketsAndMarkets, the asset management market is expected to reach a valuation of $7 billion by 2027, by registering a CAGR of 10.5% between 2022 and 2027.

We believe Trimble’s growing prospects in this promising market will likely help it win investors’ confidence in the days ahead.

Notably, TRMB has lost 2.9% in the year-to-date period against the sector’s rise of 17.6%.

Expanding Portfolio

The latest move is in sync with Trimble’s focus on expanding its product portfolio.

Apart from the latest launch, Trimble acquired Transporeon, a cloud-based transportation management software platform provider, which will help it expand its reach to carriers, shippers, and retailers, which in turn will bolster its total addressable market.

The company also introduced Dwell Time Metric in order to improve its Fleet Manager product. Trimble aims to offer accurate commercial location data that helps fleets make decisions and use their resources and drivers more effectively.

Additionally, Trimble strengthened its Tekla software by introducing Tekla Structures 2023, Tekla Structural Designer 2023, Tekla Tedds 2023 and Tekla PowerFab 2023.

We believe that the company’s strengthening portfolio offerings will continue driving its customer momentum across various end markets, which, in turn, will benefit its financial performance.

For 2023, Trimble expects revenues between $3.7 billion and $3.8 billion. The Zacks Consensus Estimate for the same is pegged at $3.75 billion, indicating growth of 2.1% from 2022.

Further, Trimble expects 2023 non-GAAP earnings per share within $2.66-$2.86. The Zacks Consensus Estimate for the same stands at $2.74 per share, indicating growth of 3.8% from 2022.

Zacks Rank and Stocks to Consider

Currently, Trimble carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Salesforce (CRM - Free Report) and Analog Devices (ADI - Free Report) . While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks has gained 33% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 14.17%.

Salesforce has gained 43.5% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 16.75%.

Analog Devices has gained 14.2% in the year-to-date period. The long-term earnings growth rate for ADI is currently projected at 10.5%.

Published in