Trimble TRMB has entered into a definitive agreement to take over a France-based technology company named Bilberry. The acquisition is likely to be complete in the fourth quarter of 2022.
Bilberry applies artificial intelligence and deep learning technology to its spraying solutions for the real-time identification of various types of weed for different types of crops. This helps sprayers spray herbicide only on weeds and not on an entire crop or barren land.
Moreover, its spraying solutions aid farmers in lowering input costs while protecting the environment.
Reportedly, Bilberry’s technological capabilities reduced herbicide use by 80%, underlining its support for sustainable farming.
Thus, the buyout of Bilberry is likely to help Trimble gain momentum among farmers.
Further, the acquisition of Bilberry will add strength to Trimble’s Resources and Utilities segment, and drive segmental revenues in the days ahead.
The segment generated revenues of $214.8 million, accounting for 23% of total second-quarter 2022 revenues, which increased 8.8% from the prior-year quarter’s level.
Trimble Inc. Price and Consensus
Trimble Inc. price-consensus-chart | Trimble Inc. Quote
Growing Agricultural Initiatives
The takeover of Bilberry will expand Trimble’s portfolio of crop-protection solutions and bolster its Agriculture Division.
Apart from the recent effort, TRMB is consistently working toward bringing innovative solutions to cater to the needs of sustainable agriculture.
In August 2022, Trimble, in collaboration with CLASS, built a precision farming system to help CLASS operators in effective tillage, broad-acre seeding, spraying and harvest operations.
Also, Trimble keeps investing in companies, which address issues in the agricultural fields and provide sustainable solutions to farmers.
Recently, TRMB invested in a U.S.-based agricultural technology company called Sabanto, which offers Farming as a Service (FaaS) to help farmers address the challenges of labor shortages, non-stop field operations, weather and significant capital expenses for agriculture machinery.
Efforts to Boost Prospects
With the acquisition of Bilberry, Trimble is expected to expand its presence in the booming precision agriculture market.
The underlined market is witnessing significant growth in recent times owing to the growing usage of advanced technologies by farmers in protecting their crops.
Per a Straits Research report, the global precision agriculture market is likely to reach $19.2 billion by 2030, witnessing a CAGR of 14.95% between 2022 and 2030.
A Grand View Research report indicates that the global precision farming market is expected to see a CAGR of 12.8% during the same forecast period.
We believe that Trimble’s solid potential in this promising market is likely to help it win investors’ confidence in the near and the long term.
Shares of TRMB have been down 26.7% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 27.2%.
Zacks Rank & Stocks to Consider
Currently, Trimble carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Arista Networks ANET, ASE Technology ASX and Monolithic Power Systems MPWR. While Arista Networks sports a Zacks Rank #1 (Strong Buy), ASE Technology and Monolithic Power Systems carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has lost 15.8% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.6%.
ASE Technology has lost 26.5% in the year-to-date period. The long-term earnings growth rate for ASX is currently projected at 23.1%.
Monolithic Power Systems has lost 6.2% in the year-to-date period. The long-term earnings growth rate for MPWR is currently projected at 25%.
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