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) Q2 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Trimble Inc. (TRMB - Free Report) delivered second-quarter 2023 non-GAAP earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate by 10.3%. The bottom line remained flat on a year-over-year basis.
TRMB’s revenues of $993.6 million beat the Zacks Consensus Estimate of $974 million. Also, the figure was up 6% year over year.
The top-line growth was driven by solid momentum across the Buildings and Infrastructure and Transportation segments.
However, softness in the Resources and Utilities and Geospatial segments continued to be an overhang.
Trimble returned 10.3% on a year-to-date basis, underperforming the industry’s growth of 22%.
TRMB generated annualized recurring revenues of $1.88 billion in the reported quarter, which increased by 24% on a year-over-year basis.
Product revenues (accounting for 49.4% of total revenues) totaled $490.5 million, down 8% on a year-over-year basis. Subscription and services revenues (50.6%) increased 23% from the year-ago quarter’s level to $503.1 million.
Trimble operates under the following four organized segments:
Buildings and Infrastructure: The segment generated revenues of $410 million (accounting for 41.3% of total revenues), which grew 7% year over year. The figure surpassed the Zacks Consensus Estimate of $401 million.
Geospatial: This segment generated revenues of $192.9 million (19.4% of total revenues), which fell 0.4% from the prior-year quarter’s level. The figure came ahead of the consensus mark of $176 million.
Resources and Utilities: This segment generated revenues of $196 million (19.7% of total revenues), down 9% from the prior-year quarter’s level. The figure came below the consensus mark of $211 million.
Transportation: The segment generated revenues of $194.7 million (accounting for 19.6% of total revenues), which was up 30% on a year-over-year basis. The figure beat the consensus mark of $190 million.
Operating Details
For the second quarter, the non-GAAP gross margin came in at 64.2%, expanding 450 basis points (bps) year over year.
On a non-GAAP basis, operating expenses accounted for 41% of revenues and expanded 370 bps from the year-ago quarter’s figure.
Non-GAAP operating margin came in at 23.2%, which expanded 80 bps year over year.
Balance Sheet
At the end of second-quarter 2023, cash and cash equivalents were $273.3 million, down from $1.04 billion at the end of first-quarter 2023.
Accounts receivables were $664.1 million in the reported quarter, up from $578.8 million in the prior quarter.
Total debt was $3.19 billion at second-quarter end compared with $2.09 billion at first-quarter end.
Guidance
For third-quarter 2023, Trimble expects revenues between $945 million and $985 million, the mid-point of which is lower than the Zacks Consensus Estimate of $973.88 million.
The company expects non-GAAP earnings per share between 56 cents and 64 cents. The consensus mark for the same is pegged at 64 cents per share.
Management expects a non-GAAP tax rate of 17.3% for the third quarter.
For 2023, Trimble updated its revenue guidance to $3.845-$3.925 billion from $3.835-$3.935 billion. The Zacks Consensus Estimate for full-year revenue is pegged at $3.88 billion.
Trimble also raised its guidance for 2023 non-GAAP earnings per share from $2.52-$2.72 to $2.57-$2.73. The Zacks Consensus Estimate for the same is pegged at $2.61 per share.
Management expects a 2023 non-GAAP tax rate of 17.5%.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
CACI is set to report fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, implying growth of 6.83% from the year-ago quarter’s reported figure.
BILL Holdings is set to report its fourth-quarter fiscal 2023 results on Aug 17. The Zacks Consensus Estimate for BILL’s earnings is pinned at 41 cents per share.
Super Micro Computer is scheduled to release its fiscal fourth-quarter 2023 results on Aug 8. The Zacks Consensus Estimate for SMCI’s earnings is pegged at $2.94 per share, suggesting an increase of 12.21% from the year-ago quarter’s reported figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Trimble (TRMB) Q2 Earnings Beat Estimates, Revenues Up Y/Y
Trimble Inc. (TRMB - Free Report) delivered second-quarter 2023 non-GAAP earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate by 10.3%. The bottom line remained flat on a year-over-year basis.
TRMB’s revenues of $993.6 million beat the Zacks Consensus Estimate of $974 million. Also, the figure was up 6% year over year.
The top-line growth was driven by solid momentum across the Buildings and Infrastructure and Transportation segments.
However, softness in the Resources and Utilities and Geospatial segments continued to be an overhang.
Trimble returned 10.3% on a year-to-date basis, underperforming the industry’s growth of 22%.
TRMB generated annualized recurring revenues of $1.88 billion in the reported quarter, which increased by 24% 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 49.4% of total revenues) totaled $490.5 million, down 8% on a year-over-year basis. Subscription and services revenues (50.6%) increased 23% from the year-ago quarter’s level to $503.1 million.
Trimble operates under the following four organized segments:
Buildings and Infrastructure: The segment generated revenues of $410 million (accounting for 41.3% of total revenues), which grew 7% year over year. The figure surpassed the Zacks Consensus Estimate of $401 million.
Geospatial: This segment generated revenues of $192.9 million (19.4% of total revenues), which fell 0.4% from the prior-year quarter’s level. The figure came ahead of the consensus mark of $176 million.
Resources and Utilities: This segment generated revenues of $196 million (19.7% of total revenues), down 9% from the prior-year quarter’s level. The figure came below the consensus mark of $211 million.
Transportation: The segment generated revenues of $194.7 million (accounting for 19.6% of total revenues), which was up 30% on a year-over-year basis. The figure beat the consensus mark of $190 million.
Operating Details
For the second quarter, the non-GAAP gross margin came in at 64.2%, expanding 450 basis points (bps) year over year.
On a non-GAAP basis, operating expenses accounted for 41% of revenues and expanded 370 bps from the year-ago quarter’s figure.
Non-GAAP operating margin came in at 23.2%, which expanded 80 bps year over year.
Balance Sheet
At the end of second-quarter 2023, cash and cash equivalents were $273.3 million, down from $1.04 billion at the end of first-quarter 2023.
Accounts receivables were $664.1 million in the reported quarter, up from $578.8 million in the prior quarter.
Total debt was $3.19 billion at second-quarter end compared with $2.09 billion at first-quarter end.
Guidance
For third-quarter 2023, Trimble expects revenues between $945 million and $985 million, the mid-point of which is lower than the Zacks Consensus Estimate of $973.88 million.
The company expects non-GAAP earnings per share between 56 cents and 64 cents. The consensus mark for the same is pegged at 64 cents per share.
Management expects a non-GAAP tax rate of 17.3% for the third quarter.
For 2023, Trimble updated its revenue guidance to $3.845-$3.925 billion from $3.835-$3.935 billion. The Zacks Consensus Estimate for full-year revenue is pegged at $3.88 billion.
Trimble also raised its guidance for 2023 non-GAAP earnings per share from $2.52-$2.72 to $2.57-$2.73. The Zacks Consensus Estimate for the same is pegged at $2.61 per share.
Management expects a 2023 non-GAAP tax rate of 17.5%.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
Investors interested in the broader technology sector can consider some top-ranked stocks like CACI International (CACI - Free Report) and BILL Holdings, Inc. (BILL - Free Report) , each carrying a Zacks Rank #2 (Buy) and Super Micro Computer (SMCI - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CACI is set to report fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, implying growth of 6.83% from the year-ago quarter’s reported figure.
BILL Holdings is set to report its fourth-quarter fiscal 2023 results on Aug 17. The Zacks Consensus Estimate for BILL’s earnings is pinned at 41 cents per share.
Super Micro Computer is scheduled to release its fiscal fourth-quarter 2023 results on Aug 8. The Zacks Consensus Estimate for SMCI’s earnings is pegged at $2.94 per share, suggesting an increase of 12.21% from the year-ago quarter’s reported figure.