Trimble (TRMB) Boosts Transportation Segment With New Solution
Trimble TRMB launched Appian Daily Planner, a cloud-based solution for optimizing multi-stop and multi-vehicle routes.
The Appian Daily Planner streamlines complex routing for fleets, combining a configurable interface with a trusted Appian optimization algorithm, saving time, money and miles by transitioning from static to real-time planning.
Further, the route optimization tool provides fleet owners with enhanced capabilities like robust decision-making, lower fuel consumption and dynamic asset visibility, among others, improving their asset utilization, on-time deliveries and customer service.
The latest launch expands the portfolio of Appian’s suite of tools, which uses advanced algorithm and route optimization expertise to offer modern, user-friendly technology that provides comprehensive visibility into route plans, order status and fleet activity.
We note that the company strives to deliver enhanced fleet management experience for final and middle mile-focused fleets with its latest move.
Trimble Inc. Price and Consensus
Trimble Inc. price-consensus-chart | Trimble Inc. Quote
Growth Prospects
The latest launch is in sync with the company’s efforts to strengthen its footprint in the global fleet management space.
Per a Fortune Business Insights report, the global fleet management software market is expected to hit $23.67 billion in 2023 and reach $79.82 billion by 2030, witnessing a CAGR of 19% between 2023 and 2030.
A Markets and Markets report suggests the global fleet management market size to reach $52.4 billion by 2027, witnessing a CAGR of 15.5% during the period of 2022-2027.
We believe that the company’s solid prospects in the promising fleet management market are expected to instill investor optimism in the stock.
Notably, TRMB has gained 3.4% in the year-to-date period, underperforming the industry’s rally of 13%.
However, macroeconomic headwinds and supply-chain constraints continue to remain concerns.
Transportation Segment in Focus
The latest move bodes well for the company’s growing efforts toward strengthening its Transportation offerings.
Apart from the latest launch, Trimble recently introduced industry-specific dwell time metrics for fleet management, by integrating Trimble Fleet Manager and its Connected Locations workflow, enabling fleets to make better planning decisions, improve SLA adherence, and utilize assets and drivers more efficiently.
Moreover, Trimble’s acquisition of Transporeon, a leading transportation management platform, remains noteworthy.
Further, Transporeon launched the Freight Marketplace platform, a neutral deal-making hub for freight procurement, aiming to address challenges in capacity alignment, fair pricing, transparency and negotiation efficiency to benefit both shippers and carriers.
Further, Transporeon has partnered with RailNetEurope to launch the EU Ukraine Visibility Map, the first European-wide tool to provide an end-to-end view of key rail corridors in and out of Ukraine.
The above-mentioned endeavors are expected to aid the performance of Trimble’s Transportation segment in the days ahead.
For second-quarter 2023, the Transportation segment generated revenues of $194.7 million, which rose 30% on a year-over-year basis.
Notably, revenues in the underlined segment contributed 19.6% of total revenues.
Our model estimates 2023 Transportation revenues of $739.9 million, indicating 22.5% year-over-year growth.
Strength in the underlined segment will likely contribute to its overall financial performance in the near term.
For 2023, Trimble expects total revenues in the band of $3.845-$3.925 billion.
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 44.7% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 15.05%.
Arista Networks shares have gained 50.6% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%.
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