Yahoo Finance Trimble (TRMB) Q1 Earnings Beat Estimates, Revenues Fall Y/Y
Trimble Inc. TRMB reported first-quarter 2023 non-GAAP earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate by 7.5%. However, the bottom line decreased 1% from the year-ago quarter’s figure.
TRMB’s revenues of $915.4 million missed the Zacks Consensus Estimate by 2.1%. Also, the figure was down 8% year over year.
The top-line decrease was attributed to weak momentum across Resource and Utilities, Geospatial, and Transportation segments.
Macroeconomic headwinds and supply-chain constraints also remained overhangs.
TRMB generated annualized recurring revenues of $1.65 billion in the reported quarter, which increased 12% on a year-over-year basis.
Trimble Inc. Price, Consensus and EPS Surprise
Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote
Top Line in Detail
Product revenues (accounting for 47.5% of total revenues) totaled $434.4 million, down 23% on a year-over-year basis. Subscription and services revenues (52.5%) increased 13% from the year-ago quarter’s level to $481 million.
Trimble operates under the following four organized segments:
Buildings and Infrastructure: The segment generated revenues of $399.5 million (accounting for 43.6% of total revenues), which fell 0.5% year over year.
Geospatial: This segment generated revenues of $152.4 million (16.6% of total revenues), which fell 27% from the prior-year quarter’s level. The segment was affected as dealers moderated inventory levels.
Resources and Utilities: This segment generated revenues of $208.6 million (22.8% of total revenues), down 9% from the prior-year quarter’s level. Lower revenues were attributed to weak agricultural revenues.
Transportation: The segment generated revenues of $154.9 million (accounting for 16.9% of total revenues), which dropped 2% on a year-over-year basis.
Operating Details
For the first quarter, the non-GAAP gross margin came in at 64.2%, expanding 630 basis points (bps) year over year.
On a non-GAAP basis, operating expenses accounted for 39.5% of revenues and expanded 510 bps from the year-ago quarter’s figure.
Non-GAAP operating margin came in at 24.7%, which expanded 120 bps year over year.
Balance Sheet
At the end of first-quarter 2023, cash and cash equivalents were $1.04 billion, up from $271 million at the end of fourth-quarter 2022.
Accounts receivables were $578.8 million in the reported quarter, falling from $643.3 million in the prior quarter.
Total debt was $2.09 billion at first-quarter end compared with $1.52 billion at fourth-quarter end.
Guidance
For second-quarter 2023, Trimble expects revenues between $962 million and $992 million. The Zacks Consensus Estimate for the same is pegged at $977.16 million.
The company expects non-GAAP earnings per share between 55 cents and 61 cents. The consensus mark for the same is pegged at 66 cents per share.
For 2023, Trimble expects revenues between $3.835 billion and $3.935 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $3.74 billion.
Trimble anticipates 2023 non-GAAP earnings per share within $2.52-$2.72. The Zacks Consensus Estimate for the same is pegged at $2.74 per share.
Management expects non-GAAP tax rate between 17.5% and 18% for 2023.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Agilent Technologies A, DigitalOcean DOCN and Paycor HCM PYCR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agilent Technologies is set to report second-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for A’s earnings is pegged at $1.27 per share, implying growth of 12.4% from the year-ago quarter’s reported figure. A has lost 11.6% in the year-to-date period.
DigitalOcean is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter. DOCN has gained 25.5% in the year-to-date period.
Paycor HCM is scheduled to report third-quarter fiscal 2023 results on May 10. The Zacks Consensus Estimate for PYCR’s earnings is pegged at 15 cents per share, suggesting an increase of 36.4% from the prior-year quarter’s reported figure. PYCR has gained 26% in the year-to-date period.
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