Group 1 - Trimble (NASDAQ: TRMB) has experienced flat performance over the past three years, with stock prices fluctuating between approximately $40 and $70 per share [1] - The underperformance of Trimble is likely attributed to various factors affecting its market position and investor sentiment [1] Group 2 - The analysis focuses on foreign stocks, particularly in the Nordic market, and includes in-depth research on U.S. growth stocks with high potential for long-term expansion [1] - The goal is to uncover undervalued opportunities and explore unique business models to assist investors in making informed decisions [1]

Core Insights - Trimble (TRMB) reported non-GAAP earnings of 89 cents per share for Q4 2024, exceeding the Zacks Consensus Estimate by 1.14% and reflecting a 41.3% year-over-year increase [1] - Revenues reached $983.4 million, surpassing the Zacks Consensus Estimate by 4.18%, marking a 5.5% year-over-year increase, with 17% growth on an organic basis [2] - The company generated annualized recurring revenues (ARR) of $2.26 billion, a 14% increase year-over-year, indicating strong growth potential [3] Financial Performance - The non-GAAP gross margin for Q4 2024 was 71.7%, an expansion of 640 basis points year-over-year [7] - Operating expenses accounted for 42.9% of total revenues, up 180 basis points year-over-year, while the non-GAAP operating margin expanded to 28.8%, a 450 basis point increase [7] - Cash and cash equivalents at the end of Q4 2024 were $738.8 million, down from $1,036.9 million in Q3 2024, while total debt decreased to $1.39 billion from $1.79 billion [8] Segment Performance - The AECO segment, which represents 42.1% of total revenues, reported revenues of $413.8 million, up 43.3% year-over-year, with 18% ARR growth driven by strong bookings [5] - Field Systems revenues, accounting for 36.9% of total revenues, fell 19.7% year-over-year to $362.8 million, but achieved 21% ARR growth [6] - Transportation and Logistics revenues increased by 7.9% year-over-year to $206.8 million, with 8% ARR growth attributed to record bookings [6] Guidance and Outlook - For Q1 2025, Trimble expects reported revenues between $794 million and $824 million, and adjusted revenues between $774 million and $804 million [10] - The company anticipates non-GAAP earnings per share between 55 cents and 61 cents for Q1 2025, with ARR expected to grow 12-14% organically [11] - For the full year 2025, reported revenues are projected between $3.37 billion and $3.47 billion, with non-GAAP earnings expected between $2.76 and $2.98 per share [12]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $983 million, with annual recurring revenue (ARR) at $2.26 billion and earnings per share (EPS) at $0.89, all exceeding the midpoint of guidance [4][5] - On an as-adjusted basis, revenue increased by 9% for the quarter and 6% for the year, with ARR up 16% [5][26] - Gross margins improved to 71.7%, marking the first time exceeding 70%, with EBITDA margins ending at 27.2% for 2024 [5][9] Business Line Data and Key Metrics Changes - AECO segment reported 18% ARR growth for both the quarter and the year, with operating income at 31.2% [28] - Field Systems experienced a slight decline in revenue for the year but saw a 2% increase in the fourth quarter, with ARR growth at 21% [30][31] - Transportation and Logistics segment reported 8% growth in both revenue and ARR for the quarter and year, driven by the MAPS and Transporeon businesses [32] Market Data and Key Metrics Changes - North America remains the strongest market, particularly in data centers and energy sectors, with a healthy sentiment among customers [47][49] - The freight market remains challenging, but Transporeon achieved record bookings in both the fourth quarter and the year [14][98] Company Strategy and Development Direction - The company’s strategy, termed "Connect and Scale," focuses on digitizing and transforming work in construction, geospatial, and transportation industries, with a combined addressable market exceeding $70 billion [7][10] - The company aims to achieve $3 billion in ARR, $4 billion in revenue, and 30% EBITDA margins by 2027 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macro environment, noting strong hiring trends among customers as a catalyst for technology adoption [50] - The company anticipates continued growth in recurring revenue and is well-positioned to capitalize on future opportunities, particularly in AI and data-centric solutions [16][17] Other Important Information - The company has initiated a $1 billion share repurchase program and remains committed to executing its capital allocation strategy [20][22] - The divestiture of the mobility business was completed, and the company is focused on tuck-in acquisitions to enhance its offerings [19][21] Q&A Session Summary Question: Current macro environment and customer sentiment - Management noted that North America is performing well, particularly in data centers and energy markets, with healthy overall sentiment despite some regional differences [47][49] Question: Impact of tariffs on financials - Management indicated that the exposure to tariffs is minimal due to the shift towards software services, and contingency plans are in place [52][54] Question: 2025 guidance and growth expectations - Management expects about two-thirds of ARR growth to come from existing customers, with significant opportunities for cross-selling and up-selling [58][59] Question: AI and operational efficiency - Management sees potential for operational efficiencies through AI, particularly in R&D and customer support functions, but quantifying this impact remains challenging [60][64] Question: Unique data and product enhancements - Management highlighted the unique ability to connect physical and digital workflows, which positions the company well for future product innovations [69][72] Question: Federal government business impact - The federal government business is expected to be flat in 2025, with ongoing subscription conversions contributing to growth [78] Question: TC1 rollout and growth contribution - Management expressed confidence in the TC1 rollout across regions, with strong customer feedback and bookings performance [82][84] Question: Transporeon performance and future outlook - Transporeon achieved record bookings despite a challenging freight market, and management expects strong performance when the market recovers [98][124] Question: Share repurchase plan and M&A impact - Management plans to initiate repurchases in Q1 and Q2, with flexibility to pursue M&A opportunities without compromising share repurchase commitments [131][133]

Core Insights - Trimble Navigation (TRMB) reported revenue of $983.4 million for the quarter ended December 2024, marking a year-over-year increase of 5.5% and exceeding the Zacks Consensus Estimate of $943.94 million by 4.18% [1] - The company achieved an EPS of $0.89, up from $0.63 a year ago, surpassing the consensus EPS estimate of $0.88 by 1.14% [1] Financial Performance - Trimble's revenue segments showed strong performance: AECO segment revenue was $413.80 million, exceeding the average estimate of $401.30 million; Field Systems segment revenue reached $362.80 million, above the estimate of $347.70 million; T&L segment revenue was $206.80 million, surpassing the estimate of $194.95 million [4] - Segment operating income also outperformed estimates: AECO operating income was $168.80 million compared to the estimate of $158.65 million; T&L operating income was $41.90 million versus the estimate of $36.14 million; Field Systems operating income was $110.20 million, slightly above the estimate of $109.18 million [4] Market Performance - Over the past month, Trimble's shares have returned -1.7%, contrasting with the Zacks S&P 500 composite's increase of +4.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Trimble Navigation (TRMB) reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and up from $0.63 per share a year ago, representing an earnings surprise of 1.14% [1] - The company achieved revenues of $983.4 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.18% and increasing from $932.4 million year-over-year [2] - Over the last four quarters, Trimble has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - Trimble shares have increased approximately 5.1% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $795.53 million, and for the current fiscal year, it is $2.90 on revenues of $3.41 billion [7] Industry Context - The Manufacturing - General Industrial industry, to which Trimble belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Trimble's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Trimble Inc. Fourth Quarter and Full Year 2024 Earnings Summary © 2025 Trimble, Inc - All Rights Reserved 1 Forward-Looking Statements Certain statements made in this presentation and any subsequent Q&A period are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations about our future financial and operational re ...

Financial Performance - Trimble reported Q4 2024 revenue of $983.4 million, a 5% increase year-over-year, and a 17% increase on an organic basis[9] - GAAP net income for Q4 2024 was $90.2 million, with diluted earnings per share (EPS) of $0.36, while non-GAAP net income was $221.5 million with diluted EPS of $0.89[9] - Net income for 2024 reached $1,504.4 million, a significant increase from $311.3 million in 2023[20] - Total segment revenue for 2024 was $3,683.3 million, up from $3,598.7 million in 2023, representing a growth of approximately 2.4%[22] - GAAP revenue for Q4 2024 was $983.4 million, a 5.4% increase from $932.4 million in Q4 2023[24] - GAAP diluted net income per share for Q4 2024 was $0.36, compared to $0.25 in Q4 2023, reflecting a 44.0% increase[25] Earnings and Margins - The company achieved a record gross margin of 69.3% in Q4 2024, compared to 61.9% in Q4 2023[9] - GAAP operating income for Q4 2024 was $173.5 million, a significant increase from $96.9 million in Q4 2023, reflecting a margin increase from 10.4% to 17.6%[24] - Non-GAAP operating income for the full year 2024 was $937.2 million, or 25.4% of revenue, compared to $934.7 million, or 24.6% in 2023[24] - Non-GAAP operating income for Q4 2024 was $283.6 million, representing 28.8% of revenue, compared to $226.6 million or 24.3% of revenue in Q4 2023[25] Guidance and Future Outlook - For full-year 2025, Trimble expects revenue between $3,370 million and $3,470 million, with GAAP EPS guidance of $1.46 to $1.67 and non-GAAP EPS guidance of $2.76 to $2.98[5] - The mobility divestiture, which closed on February 8, 2025, is reflected in the guidance for both full-year 2025 and Q1 2025[7] - Forecasted GAAP diluted net income per share for Q1 2025 is projected to be between $0.21 and $0.27, while non-GAAP diluted net income per share is expected to be between $0.55 and $0.61[25] Shareholder Returns - Trimble authorized a $1 billion share repurchase program, replacing the existing authorization[8] - The company repurchased approximately 2.9 million shares for $175.0 million during fiscal 2024[10] - The company repurchased $175.0 million in common stock during 2024, compared to $100.0 million in 2023[20] Cash Flow and Financial Health - Cash flow from operating activities for 2024 was $531.4 million, a decrease from $597.1 million in 2023[20] - The company reported a net cash provided by investing activities of $1,861.1 million in 2024, a turnaround from a net cash used of $2,068.1 million in 2023[20] - The company’s cash and cash equivalents at the end of the period increased to $747.8 million from $238.9 million at the beginning of the period[20] - Trimble's total liabilities decreased to $3,743.0 million in 2024 from $5,039.2 million in 2023, indicating improved financial health[18] Segment Performance - Operating income for the AECO segment in 2024 was $463.6 million, with an operating income margin of 34.1%, compared to 29.6% in 2023[22] - The Field Systems segment generated $1,535.9 million in revenue for 2024, down from $1,967.9 million in 2023, indicating a decline of approximately 22%[22] Deferred Revenue and Taxation - Deferred revenue increased to $168.5 million in 2024 from $26.0 million in 2023, indicating a strong growth in future revenue recognition[20] - Cash tax paid for the Ag divestiture in 2024 was $122.0 million, with no tax paid for the previous year[20] Capital Expenditures - Capital expenditures for the year 2024 were $33.6 million, down from $42.0 million in 2023, indicating a reduction of 20.9%[25] Strategic Focus - The company plans to continue focusing on market expansion and new product development to drive future growth[24]

Core Viewpoint - Trimble Inc. reported transformative financial results for fiscal year 2024, highlighting a focus on portfolio simplification and customer delivery, leading to record levels in software revenue, annualized recurring revenue (ARR), gross margin, and profitability [2][10]. Financial Highlights - For Q4 2024, Trimble achieved total revenue of $983.4 million, a 5% increase year-over-year, and a 17% increase on an organic basis [10]. - The company reported annualized recurring revenue (ARR) of $2.26 billion, up 14% year-over-year, also reflecting a 14% organic growth [10]. - GAAP operating income for Q4 2024 was $173.5 million, representing 17.6% of revenue, while non-GAAP operating income was $283.6 million, or 28.8% of revenue [10]. - GAAP net income for Q4 2024 was $90.2 million, with diluted earnings per share (EPS) of $0.36, while non-GAAP net income was $221.5 million, with non-GAAP diluted EPS of $0.89 [10][11]. Forward-Looking Guidance - For full-year 2025, Trimble expects revenue between $3,370 million and $3,470 million, with GAAP EPS projected between $1.46 and $1.67, and non-GAAP EPS between $2.76 and $2.98 [3][4]. - For Q1 2025, revenue is anticipated to be between $794 million and $824 million, with GAAP EPS between $0.21 and $0.27, and non-GAAP EPS between $0.55 and $0.61 [4][5]. Share Repurchase Authorization - The Board of Directors has authorized a common stock repurchase program of up to $1 billion, replacing the previous authorization and effective immediately [6]. Segment Performance - In Q4 2024, Trimble's reporting segments showed varied performance, with AECO segment revenue at $413.8 million, Field Systems at $362.8 million, and T&L at $206.8 million [16]. - The operating income percentages for these segments were 40.8% for AECO, 30.4% for Field Systems, and 20.3% for T&L [16]. Cash Flow and Capital Expenditures - Trimble reported net cash provided by operating activities of $531.4 million for the year, with free cash flow of $497.8 million after capital expenditures of $33.6 million [15][28]. - The company generated significant cash flow from divestitures, amounting to $1,923.4 million [15]. Company Overview - Trimble focuses on transforming how people move, build, and live, utilizing core technologies in positioning, modeling, and data analytics to enhance productivity, quality, safety, transparency, and sustainability [8].

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Trimble Navigation (TRMB) , which belongs to the Zacks Manufacturing - General Industrial industry.This GPS manufacturer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 10.84%.For the most recent quarter, Trimble was expected to po ...

Accelerating the Future of Transportation Technology through the Global Expansion of Virtual VehicleTrimble and Platform Science Will Strengthen and Expand Their Ongoing Commercial Relationship as Part of This Agreement WESTMINSTER, Colo. and SAN DIEGO, Feb. 10, 2025 /PRNewswire/ -- Trimble (Nasdaq: TRMB) and Platform Science announced the completion of Platform Science's acquisition of Trimble's global transportation telematics business units. The deal was first announced in September 2024 during the Trimb ...