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Trimble Q4 Earnings & Revenues Surpass Estimates, Increase Y/Y

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Trimble (TRMB - Free Report) delivered non-GAAP earnings of 89 cents per share in the fourth quarter of 2024, beating the Zacks Consensus Estimate by 1.14%. The reported figure increased 41.3% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues of $983.4 million exceeded the Zacks Consensus Estimate by 4.18%. This reflects a 5.5% year-over-year increase, with 17% on an organic basis.

Product revenues (29.4% of total revenues) were $288.9 million, down 28.3% year over year. Subscription and services revenues (70.6% of total revenues) increased 31.1% year over year to $694.5 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

TRMB generated annualized recurring revenues (ARR) of $2.26 billion, which increased 14% year over year (up 14% on an organic basis).

Trimble shares gained 1.83% in the after-hours trading on Feb. 19 to $76.95, driven by impressive fourth-quarter results and expectations of continued strong organic ARR growth, enhancing predictability and profitability.

TRMB shares have overperformed the Zacks Industrial Products sector year to date. The stock has gained 7% against the sector’s return of 2.7%. This momentum is expected to continue, driven by strong financial performance and an optimistic outlook.

TRMB’s Quarterly Details

The AECO (Architecture, Engineering, Construction and Owners) segment’s revenues (42.1% of total revenues) were $413.8 million, up 43.3% year over year.

The AECO segment delivered 18% ARR growth, driven by strong bookings, robust performance in Trimble Construction, and successful cross-selling and upselling initiatives.

Field Systems revenues (36.9% of total revenues) of $362.8 million fell 19.7% year over year. Despite this, the segment achieved 21% ARR growth, driven by Positioning Services, and increased sales of Civil Construction and Geospatial subscription offerings.

Transportation and Logistics revenues (21% of total revenues) of $206.8 million moved up 7.9% year over year. The segment achieved 8% ARR growth, driven by record Transporeon bookings and improvements in the freight markets.

In the fourth quarter of 2024, the non-GAAP gross margin was 71.7%, expanding 640 basis points (bps) year over year.

On a non-GAAP basis, operating expenses accounted for 42.9% of total revenues, up 180 bps year over year.

The non-GAAP operating margin was 28.8%, expanding 450 bps year over year.

Trimble’s Balance Sheet & Cash Flow Details

At the end of the fourth quarter of 2024, cash and cash equivalents were $738.8 million, down from $1036.9 million at the end of the third quarter of 2024.

Total debt was $1.39 billion at the end of the fourth quarter, down from $1.79 billion at the end of the third quarter of 2024, reflecting successful debt reduction efforts.

Cash generated by operating activities was $115.1 million in the reported quarter compared with $94.9 million in the previous quarter.

The free cash flow was $109 million compared with the previous quarter’s $88.5 million.

TRMB Initiates Q1 & 2025 Guidance

The company provided two presentations — one based on as-adjusted figures, excluding the financial results of the agriculture business (divested in first-quarter 2024) and the mobility business (divested in first-quarter 2025), and the other on a reported basis, incorporating all adjustments.

For the first quarter of 2025, Trimble expects reported revenues of $794-$824 million and adjusted revenues of $774-$804 million.

The non-GAAP operating margin is expected to be 22.4-23.7% on a reported basis and from 22.7% to 24.1% on an adjusted basis.

ARR is expected to grow 12-14% organically on a reported basis and 13-15% organically on an adjusted basis.

The company anticipates non-GAAP earnings per share between 55 cents and 61 cents on a reported basis.

For 2025, Trimble projects reported revenues between $3.37 billion and $3.47 billion, while adjusted revenues are expected between $3.35 billion and $3.45 billion.

The non-GAAP operating margin is expected to be 26.2-27.2% on a reported basis and 26.3-27.3% on an adjusted basis.

ARR is expected to grow 12-14% organically on a reported basis and 13-15% organically on an adjusted basis.

Non-GAAP earnings for 2025 are expected between $2.76 and $2.98 per share on a reported basis.

Zacks Rank & Stocks to Consider

Currently, Trimble carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader Computer and Technology sector are Okta (OKTA - Free Report) , DoubleVerify (DV - Free Report) and Salesforce (CRM - Free Report) . Okta sports Zacks Rank #1 (Strong Buy), and DoubleVerify and Salesforce carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Okta shares have risen 23% year to date. OKTA is set to report fourth-quarter fiscal 2025 results on March 03.

DoubleVerify shares have gained 17.2% year to date. DV is set to report fourth-quarter 2024 results on Feb. 27.

Salesforce shares have lost 3.1% year to date. CRM is set to report fourth-quarter fiscal 2025 results on Feb. 26.

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