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Trimble (TRMB) Q2 Earnings and Revenues Trump Estimates

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Trimble Inc. TRMB reported second-quarter 2021 non-GAAP earnings of 72 cents per share, which beat the Zacks Consensus Estimate by 20%. The bottom line improved 9.1% sequentially and 38.5% year over year.

Per management, non-GAAP revenues were up 29% year over year to $945.3 million.

Further, the company’s GAAP revenues were $945.2 million, which surpassed the Zacks Consensus Estimate by 9.2%. Also, the figure was up 29% year over year.

The top line was driven by solid performance in machine control in civil construction, guidance in agriculture as well as survey and mapping. Further, solid momentum across all the segments aided the results.

Trimble Inc. Price and EPS Surprise

Trimble Inc. Price and EPS Surprise
Trimble Inc. Price and EPS Surprise

Trimble Inc. price-eps-surprise | Trimble Inc. Quote

Top Line in Detail

Product revenues (accounting for 63% of GAAP revenues) totaled $594.9 million, up 44.3% on a year-over-year basis. Services revenues (17% of revenues) were $162.1 million, which improved 3.5% year over year. Subscription revenues (20% of revenues) increased 14.3% from the year-ago quarter to $188.2 million.

Trimble operates under the following four organized segments.

Buildings and Infrastructure: The segment generated revenues of $364.7 million (accounting for 39% of total second-quarter revenues), which increased 23.5% on a year-over-year basis.

Geospatial: This segment generated revenues of $219.7 million (23% of total revenues), which grew 51.3% from the prior-year quarter.

Resources and Utilities: This segment generated revenues of $197.5 million (21% of total revenues), which increased 38.2% from the prior-year quarter.

Transportation: The segment generated revenues of $163.3 million (accounting for 17% of total second-quarter revenues), which improved 8.6% on a year-over-year basis.

Operating Details

For the second quarter, non-GAAP gross margin came in at 58.2%, contracting 70 basis points (bps) year over year.

Adjusted operating expenses accounted for 34% of non-GAAP revenues, contracting 180 bps from the year-ago quarter.

Consequently, non-GAAP operating margin came in at 24.2%, which expanded 110 bps year over year.

Balance Sheet

At the end of second-quarter 2021, cash and cash equivalents were $484.4 million, up from $264.6 million at the end of first-quarter 2021. Inventories were $298.5 million, down from $298.7 million in the previous quarter.

Long-term debt was $1.292 billion at second quarter-end compared with $1.291 billion at first quarter-end.

Further, the company generated $200.6 million of cash from operations compared with $228.2 million in the first quarter.

Trimble generated free cash flow of $189.8 million for the reported quarter.

Guidance

For full-year 2021, it has raised the guidance for GAAP revenues from $3.40-$3.50 billion to $3.55-$3.65 billion.

Further, the company revised the guided range for non-GAAP revenues upward from $3.40-$3.50 billion to $3.55-$3.65 billion.

Notably, the Zacks Consensus Estimate for 2021 revenues is pegged at $3.45 billion.

Also, the company raised the guidance for 2021 non-GAAP earnings per share from the range of $2.30-$2.50 to $2.45-$2.65. The Zacks Consensus Estimate for the same stands at $2.44 per share.

Zacks Rank & Other Stocks to Consider

Currently, Trimble has a Zacks Rank #2 (Buy).

Some similar-ranked stocks in the broader technology sector include Carrier Global Corporation CARR, Agilent Technologies A and Ametek AME. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for Carrier, Agilent and Ametek are currently projected at 14.5%, 13% and 10.2%, respectively.


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