Trimble (TRMB) Q2 Earnings Beat Estimates, Revenues Down Y/Y

Core Insights - Trimble (TRMB) reported non-GAAP earnings of 62 cents per share for Q2 2024, exceeding the Zacks Consensus Estimate by 8.77% but down 3.1% year-over-year [1] - Revenues reached $870.8 million, beating the Zacks Consensus Estimate by 1.16% but declining 12.4% year-over-year, with a 1% increase on an organic basis [1] Revenue Breakdown - Product revenues, contributing 36.8% to total revenues, totaled $320.4 million, down 34.7% year-over-year [2] - Subscription and services revenues, making up 63.2% of total revenues, increased 9.4% year-over-year to $550.4 million [2] - Annualized recurring revenues (ARR) reached $2.11 billion, up 12% year-over-year (14% organic growth) [2] Segment Performance - AECO revenues (34.4% of total revenues) were $299.7 million, up 13.5% year-over-year, with 18% ARR growth driven by product integration and innovative solutions [3] - Field Systems revenues (43.6% of total revenues) were $379.3 million, down 29.8% year-over-year, but the segment achieved 17% ARR growth [4] - T&L revenues (22% of total revenues) were $191.8 million, increasing 1.5% year-over-year, with double-digit ARR growth from Transporeon and maps business [5] Financial Metrics - Non-GAAP gross margin for Q2 2024 was 66.5%, expanding 220 basis points year-over-year [5] - Non-GAAP operating margin was 22.3%, contracting 90 basis points year-over-year [6] Balance Sheet - Cash and cash equivalents at the end of Q2 2024 were $944.1 million, up from $255.1 million at the end of Q1 2024 [7] - Total debt decreased to $1.79 billion at the end of Q2 from $3.03 billion at the end of Q1 [7] Guidance - For Q3 2024, Trimble expects revenues between $840 million and $880 million, with non-GAAP earnings projected between 58 cents and 64 cents per share [8] - For the full year 2024, revenues are expected to be between $3.59 billion and $3.67 billion, with non-GAAP earnings projected between $2.67 and $2.81 per share [8] Stock Performance - Trimble's shares have underperformed the Zacks Computer & Technology sector year-to-date, declining 3.1% compared to the sector's increase of 10.3% [9]