Trimble (TRMB) Q4 Earnings Beat Estimates, Revenues Up Y/Y

Trimble TRMB delivered fourth-quarter 2023 non-GAAP earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.62% and increased 5% on a year-over-year basis.

Revenues of $932.4 million beat the Zacks Consensus Estimate by 2.59% and increased 9% year over year.

Product revenues (accounted for 43.2% of total revenues) totaled $402.8 million, down 3.1% on a year-over-year basis. Subscription and services revenues (53.6% of total revenues) increased 20.2% year over year to $529.6 million.

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 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 of $1.98 billion, which increased 24% on a year-over-year basis (up 13% on an organic basis).

Top-Line Details

Buildings and Infrastructure revenues (41.7% of total revenues) were $388.5 million, which increased 11% year over year. The figure beat the Zacks Consensus Estimate by 2.62%.

Geospatial revenues (18.2% of total revenues) of $169.5 million fell 1% year over year. The figure beat the Zacks Consensus Estimate by 2.31%.

Resources and Utilities revenues (19.3% of total revenues) of $179.6 million declined 3% year over year. The figure lagged the Zacks Consensus Estimate by 1.98%.

Transportation generated revenues (20.9% of total revenues) of $194.8 million, up 30% on a year-over-year basis. The figure lagged the Zacks Consensus Estimate by 2.35%.

Operating Details

In fourth-quarter 2023, the non-GAAP gross margin came in at 65.3%, expanding 360 basis points (bps) year over year.

On a non-GAAP basis, operating expenses accounted for 41% of revenues, up 120 bps year over year.

Non-GAAP operating margin came in at 24.3%, which expanded 240 bps year over year.

Balance Sheet

At the end of the fourth quarter of 2023, cash and cash equivalents were $229.8 million, up from $216.8 million at the end of third-quarter 2023.

Total debt was $3.07 billion at the end of the fourth quarter compared with $3.05 billion at the third-quarter end.

Guidance

For first-quarter 2024, Trimble expects revenues between $905 million and $935 million. The Zacks Consensus Estimate is pegged at $974.52 million, indicating 6.46% year-over-year growth.

The company expects non-GAAP earnings between 57 cents and 62 cents per share. The consensus estimate is pegged at 68 cents, unchanged over the past seven days.

For 2024, Trimble expects revenues between $3.57 billion and $3.67 billion. The Zacks Consensus Estimate is pegged at $3.82 billion, indicating 1.17% year-over-year growth.

Trimble expects 2024 non-GAAP earnings between $2.60 and $2.80 per share. The Zacks Consensus Estimate for earnings is pegged at $2.72 per share, unchanged over the past seven days.

Zacks Rank & Stocks to Consider

Trimble currently carries a Zacks Rank #3 (Hold).

Shares of Trimble have returned 2.8% on a year-to-date basis, underperforming the Zacks Computer and Technology sector’s return of 10.5%.

Shopify SHOP, BlackLine BL and CrowdStrike CRWD are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify shares have gained 14.4% year to date. SHOP is set to report its fourth-quarter 2023 results on Feb 13.

BlackLine shares have declined 2.6% year to date. BL is set to report its fourth-quarter 2023 results on Feb 13.

CrowdStrike shares have jumped 25.8% year to date. CRWD is set to report its fourth-quarter fiscal 2024 results on Mar 5.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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