Yahoo Finance Trimble (TRMB) Boosts Construction Business With New Software
Trimble TRMB has introduced the Siteworks Machine Guidance Module in a bid to strengthen the offerings of its construction business.
The Siteworks Machine Guidance system includes Trimble SPS986 or Trimble R780 GNSS Smart Antenna, which supports Trimble Siteworks software.
Further, the new software module system enables users to shift the system across multiple excavators and job sites. Thus, it acts like a construction surveying solution.
Furthermore, it enables contractors to conduct a variety of tasks on the job site such as surveying, machine guidance, in-field design and reporting, using the same rugged Site Positioning Systems hardware and software. Also, the module helps in sharing designs between locations.
Notably, the Siteworks Machine Guidance Module has strengthened the company’s Siteworks Software with support for on-machine excavator guidance and operator assistance capabilities.
We believe that the latest move is likely to drive Trimble’s momentum among contractors, especially small site and utility contractors. This, in turn, will likely aid the performance of its Buildings and Infrastructure segment.
In the fourth quarter, the Buildings and Infrastructure segment generated revenues of $350.2 million, which accounted for 41% of total revenues.
Trimble Inc. Price and Consensus
Trimble Inc. price-consensus-chart | Trimble Inc. Quote
Growth Prospects
The latest move of the company positions it well to capitalize on the growth prospects present in the building and infrastructure construction market.
A report from Business Research Company states that the global building construction market is expected to hit $7.6 trillion in 2023 and reach $9.6 trillion by 2027.
Per a report from Mordor Intelligence, the global Infrastructure construction market is expected to hit $3.3 trillion by 2027 at a CAGR of 6.5% between 2023 and 2028.
According to a report from Expert Market Research, the global construction market is anticipated to hit $18.6 trillion by 2028 at a CAGR of 6.5% between 2023 and 2028.
A report from Allied Market Research indicates that the global building construction market is likely to reach $11.1 trillion by 2031 at a CAGR of 7.4% between 2022 and 2031.
We believe that Trimble’s solid prospects in these promising markets will help it in winning investors’ confidence in the days ahead.
Coming to the price performance, TRMB has lost 29% in the past year against the industry’s rally of 21.9%.
Portfolio Strength: Key Catalyst
The latest move is in sync with Trimble’s growing efforts toward expanding its product portfolio.
Recently, TRMB enhanced its Engage Lane dynamic contract procurement solution, which provides dwell time metrics for better and more informed product procurement decisions.
Further, Trimble introduced advanced path planning technology, which is designed to boost the efficiency of work by aiding the optimization and automation of the trajectory, speed and overall path design of industrial equipment.
We believe Trimble’s growing efforts toward strengthening its portfolio offerings are likely to continue driving its customer momentum.
Recently, Trimble’s AgileAssets management was selected by Norwegian Public Roads Administration Operations and Maintenance to oversee, maintain and operate the country's 10,600-km road network and related transportation infrastructure.
Further, the company’s AgileAssets cloud software contract with National Highway has been extended. The latest contract extension highlights the efficiency and reliability of its AgileAssets software.
TRMB’s RTX technology got selected by Nissan Motor. With the RTX technology, Nissan aims to support its advanced driver assistance system.
We note that expanding clientele on the back of robust portfolio strength is expected to aid the company’s financial performance in the near term.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET, Salesforce CRM and Analog Devices ADI. While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 26.4% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.
Salesforce shares have lost 6.8% in the past year. CRM’s long-term earnings growth rate is currently projected at 16.75%.
Analog Devices shares have gained 23.6% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.25%.
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