Trimble Inc. (TRMB - Free Report) is firing on all cylinders in the transportation sector on the back of its robust Video Intelligence solution, which allows fleets to record video evidence in case of an accident via a 360-degree view.
This is evident from its recent collaboration with Pana-Pacific, which offers technology to the commercial trucking industry. The latter has added Trimble’s Video Intelligence solution to its product offerings through this partnership.
Moreover, Pana-Pacific will sell Trimble video equipment with a subscription to the Video Intelligence solution, which aids in enhancing coaching opportunities with drivers.
Move to Consolidate Customer Momentum
We believe, the latest move will make Video Intelligence solution widely accessible to the heavy-duty truck dealers, which in turn, is expected to boost its adoption rate. Consequently, this will drive the top line of Trimble.
Moreover, the collaboration with Pana-Pacific is expected to add stimulus to Trimble’s momentum across the OEM heavy-duty truck dealer network.
All these are anticipated to accelerate sales growth in the company’s Transportation segment that generated $198.8 million sales in the last reported quarter. The figure was up 9.3% year over year and accounted for 23.3% of the total revenues.
Transportation Portfolio Strength: Key Catalyst
Trimble’s sturdy transportation solutions portfolio remains the key forte. Moreover, the company’s steadfast endeavors to expand and innovate its offerings in the transportation sector are envisioned to help it winning plum partnership deals.
Apart from Video Intelligence solution, the company recently added a Contract Maintenance module to its transportation portfolio. Notably, the module will enable fleets to save on additional administrative overhead costs in case of expanding service offerings. Further, the fleets will be able to streamline the monthly billing and invoicing process efficiently.
Additionally, the company recently rolled out TMW.Suite and TruckMate transportation management system (TMS) solutions, which provide an advanced transportation operational management to the transportation and logistics providers.
Further, Trimble’s buyout of a fleet management provider Veltec has helped strengthening its fleet safety and efficiency solutions portfolio.
We believe that expanding transportation offerings will deliver better customer experience, which in turn, will cement the company’s customer base.
Zacks Rank & Stocks to Consider
Trimble currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Alteryx (AYX - Free Report) , Synopsys (SNPS - Free Report) and Keysight Technologies (KEYS - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Alteryx, Synopsys and Keysight is currently pegged at 17.62%, 12% and 10%, respectively.
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