Trimble (TRMB) Boosts Geospatial Segment With New Partnership
Trimble TRMB partnered with Ukraine-based telecommunication company, Kyivstar, to aid the installation of a Continuously Operating Reference Station (CORS) network for Global Navigation Satellite System (GNSS) correction services on the latter’s communication towers.
Notably, Trimble's hardware and software positioning technology will be used to build an annual subscription service offering high-accuracy real-time or post-processed GNSS corrections data for various commercial operations.
Also, Trimble Alloy reference receivers and Trimble Zephyr model 3 antennas will be leveraged for the network.
Additionally, the network will utilize Trimble Pivot Platform software for managing CORS stations and generating accurate GNSS corrections, ensuring a reliable, efficient workflow for both operators and end users.
Growth Prospects
We mark the latest move as Trimble’s growing focus to expand its customer base across the globe. Also, the move will help the company to expand its footprint in the global GNSS market.
Per a ResearchGate report, the global GNSS market is expected to reach $299.84 billion by 2030, indicating a CAGR of 9.9% between 2023 and 2030.
Strong momentum in the promising GNSS market will likely instill investor optimism in the stock.
However, macroeconomic headwinds and supply-chain constraints continue to remain concerns.
Notably, TRMB has lost 2.8% in the year-to-date period, underperforming the industry’s rally of 10%.
Strength in Geospatial Segment
The latest Kyivstar partnership highlights strength in Trimble’s Geospatial segment offerings.
Trimble recently launched the R580 GNSS receiver, enhancing surveying, mapping, civil construction and utilities professionals' productivity by capturing centimeter-level positioning.
The receiver uses Trimble Maxwell 7 chipset technology for fast processing, anti-spoofing and GNSS constellation tracking, enhancing satellite availability and robust positioning in diverse environments.
Further, the company launched the Trimble Terra Office add-in for Esri ArcGIS Pro, a desktop solution, which enables customers to connect TerraFlex workflows directly to their ArcGIS environment, allowing them to manage and create geospatial data collection projects within ArcGIS Pro.
The abovementioned endeavors are expected to aid the performance of the Geospatial segment in the days ahead.
In second-quarter 2023, the segment generated revenues of $192.9 million, which accounted for 19.4% of the total revenues.
However, the figure was down 0.4% year over year due to reductions in dealer inventory levels as a result of improved product lead times and macroeconomic concerns.
Nevertheless, the efforts to strengthen the underlined segment will likely aid the overall financial performance for the upcoming period.
For 2023, Trimble expects revenues between $3.845 billion and $3.925 billion, with full-year organic growth of 2-5%. The consensus mark for the same is pegged at $3.87 billion, indicating growth of 5.3% from 2022.
Zacks Rank and Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Dell Technologies DELL, Badger Meter BMI and Arista Networks ANET. While Dell Technologies sports a Zacks Rank #1 (Strong Buy), Badger Meter and Arista Networks carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies shares have gained 71.4% in the year-to-date period. DELL’s long-term earnings growth rate is currently projected at 12%.
Badger Meter shares have gained 37.9% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 15.05%.
Arista Networks shares have gained 46.6% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%.
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