Trimble (TRMB), Mincon Team Up to Boost Construction Business
Trimble TRMB collaborated with Mincon to provide the Trimble Ready factory option for the latter’s piling and drilling attachments.
Notably, this collaboration facilitates Trimble's Groundworks Machine Control System installation for Mincon Drill Mast Attachments, reducing installation costs and complexities for skid steers and excavators.
Further, Mincon Solar Installation Drills and Pile Drivers utilize Trimble Groundworks technology for efficient drilling and piling operations, offering stakeless navigation, positioning accuracy, and as-built data, thereby enhancing scalable efficiency in solar construction projects.
We note that Trimble is expected to gain solid traction among solar contractors on the back of the latest move.
Moreover, the above collaboration is expected to aid the company in strengthening its Trimble Connected Site portfolio by boosting its customer base.
This, in turn, will likely add strength to the company’s construction business. This will benefit the Buildings and Infrastructure segment.
Trimble Inc. Price and Consensus
Trimble Inc. price-consensus-chart | Trimble Inc. Quote
Growth Prospects
The latest move bodes well for the company’s growing efforts to strengthen its footing in the global solar energy market.
Per an Allied Market Research report, the global solar energy market size is expected to reach $300.3 billion by 2032, witnessing a CAGR of 12.3% between 2023 and 2032.
A Fortune Business Insights report predicts the global solar power market size to reach $373.84 billion by 2029, indicating a CAGR of 6.9% during the forecast period of 2022-2029.
Solidifying prospects of Trimble in the promising solar energy market will likely instill investor optimism in the stock.
Notably, TRMB has gained 13% in the year-to-date period, outperforming the industry’s rally of 11.5%.
Strength in Buildings and Infrastructure Segment
The latest move is in sync with Trimble’s growing efforts to strengthen its Buildings and Infrastructure segment across various end markets.
Notably, Trimble launched SketchUp Viewer for Meta Quest 2, Pro, and 3, providing an immersive VR experience for interior designers, architects, engineers, and construction professionals to engage in experiential design reviews for informed decision-making.
Further, Trimble launched Trimble Unity AMS, an enterprise asset management solution built on Trimble's Cityworks platform, allowing utilities to manage their asset infrastructure's entire lifecycle, thereby improving service reliability and operational success.
Additionally, Trimble unveiled the Trimble Siteworks Machine Guidance Module, expanding the capabilities of Trimble Siteworks Software from surveying and layout to on-machine excavator guidance and operator assistance. This module is designed for small sites and utility contractors, allowing easy movement between multiple excavators and job sites.
All the above-mentioned endeavors are expected to aid the Buildings and Infrastructure segment’s performance in the days ahead.
In second-quarter 2023, the Buildings and Infrastructure segment generated revenues of $410 million, which rose 7% on a year-over-year basis.
Notably, revenues in the underlined segment contributed 41.3% of total revenues.
Our model estimates 2023 Buildings and Infrastructure revenues to be $1.63 billion, indicating 9% year-over-year growth.
Strength in the underlined segment will likely contribute to its overall financial performance in the near term and instill investor optimism in the stock.
For 2023, Trimble expects total revenues in the band of $3.845-$3.925 billion.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Applied Materials AMAT, Arista Networks ANET and Carrier Global CARR. While Applied Materials sports a Zacks Rank #1 (Strong Buy), Arista Networks and Carrier Global carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Applied Materials have gained 58.1% in the year-to-date period. AMAT’s long-term earnings growth rate is currently projected at 6.10%.
Arista Networks shares have gained 44.2% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%.
Carrier Global shares have gained 57.4% in the year-to-date period. CARR’s long-term earnings growth rate is currently projected at 10.12%.
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