Trimble (TRMB) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Trimble announced a $1 billion share buyback program, signaling strong capital returns and solid organic growth for 2025. The company's shift to recurring revenue, driven by software and services, is boosting margins and making shares attractive. Trimble's diverse segments, particularly AECO, are showing high operating margins, with significant potential for margin expansion in Transport and Logistics.
Trimble Inc. transitioned to a subscription-based model, with ARR growing 14% YoY and recurring revenues now comprising 62% of total revenue. While ARR is expanding, total revenue is expected to decline by 5-9% in 2025 due to divestments and the transition away from hardware sales. Trimble spends 26% of gross profit on R&D to stay competitive, but rising competition could drive costs higher.
Trimble's fourth-quarter 2024 results impress with strong organic ARR growth and solid 2025 guidance, boosting confidence in profitability and stability.
Trimble Inc. (NASDAQ:TRMB ) Q4 2024 Earnings Conference Call February 19, 2025 8:00 AM ET Company Participants Rob Painter - President & Chief Executive Officer Phil Sawarynski - Chief Financial Officer Conference Call Participants Jason Celino - KeyBanc Capital Markets Kristen Owen - Oppenheimer Jonathan Ho - William Blair Chad Dillard - Bernstein Joshua Tilton - Wolfe Research Robert Mason - Baird Operator Ladies and gentlemen, thank you for standing by. My name is Krista and I will be your conference operator today.
While the top- and bottom-line numbers for Trimble (TRMB) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Trimble Navigation (TRMB) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.63 per share a year ago.
Trimble forecast first-quarter revenue above Wall Street estimates on Wednesday, banking on strong demand for its hardware and software solutions.
Trimble (TRMB) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Trimble (TRMB) reported earnings 30 days ago. What's next for the stock?
Trimble's strategic shift towards software-driven models and double-digit ARR growth supports a 'Buy' rating with a one-year target price of $86 per share. Divestiture of non-core businesses, including a $2 billion joint venture sale to AGCO, enables Trimble to focus on high-growth areas and unlock value. Projected organic revenue growth of 8% and ARR growth of 11%-13% in FY24, driven by strong performance in Buildings and Infrastructure, Geospatial, and other segments.
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