TRMB Earnings Prediction
The chart below shows how TRMB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TRMB sees a +2.33% change in stock price 10 days leading up to the earnings, and a +2.83% change 10 days following the report. On the earnings day itself, the stock moves by -2.47%. This data can give you a slight idea of what to expect for the next quarter's release.
TRMB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
983.40M
5.47%
--
Gross Margin
66.63%
13.26%
--
Operating Margin
19.37%
35.45%
--
Net Margin
9.17%
35.65%
--
EPS
0.36
44.00%
--
No Data Available
TRMB Earnings Analysis
Trimble Inc Corporation (TRMB.O) Earnings Conference Call
Positive
Earnings Per Share Beat: Trimble Inc. reported a strong fourth quarter with earnings per share (EPS) of $0.89, exceeding expectations of $0.88.
Fourth Quarter Revenue Achievement: The company achieved fourth quarter revenue of $983 million, which was above the midpoint of their guidance.
Recurring Revenue Growth: Annual Recurring Revenue (ARR) reached $2.26 billion, marking a 16% increase, indicating strong growth in recurring revenue streams.
Gross Margin Achievement: Gross margins improved to 71.7%, the first time crossing the 70% threshold, showcasing operational efficiency and cost management.
Quarterly Revenue Increase: Trimble's revenue increased by 9% for the quarter and 6% for the year on an as-adjusted basis, reflecting solid performance across its segments.
Recurring Revenue Transformation: The company has successfully transformed its business model, with recurring revenue now accounting for 62% of overall revenue, up from previous years.
Software Revenue Increase: Trimble's overall software and services revenue increased to 76%, indicating a shift towards higher-margin offerings.
EBITDA Improvement: The company reported a significant improvement in EBITDA, ending 2024 at 27.2%, which is over 400 basis points higher than previous years.
Market Transformation Strategy: Trimble's strategy, termed Connect and Scale, is focused on digitizing and transforming work in large, underserved markets, with a combined addressable market of over $70 billion.
Growth Targets and Projections: The company aims to achieve $3 billion in ARR, $4 billion in revenue, and 30% EBITDA margins by 2027, demonstrating a clear growth trajectory.
Negative
Revenue Growth Slowdown: Trimble's revenue growth was only 9% for the quarter and 6% for the year, indicating a slowdown compared to previous periods.
Revenue Concerns Amid EPS Beat: Despite beating EPS expectations, the overall revenue of $983 million may not be sufficient to sustain long-term growth given the competitive landscape.
Agriculture Business Divestment Impact: The agriculture business was divested, which could impact future revenue streams and market presence in that sector.
Gross Margin Achievement: The company reported gross margins of 71.7%, but this is only the first time crossing the 70% level, suggesting previous margins were lower and may indicate volatility in profitability.
Ambitious 2027 Financial Goals: The ambitious goals set for 2027, including $3 billion of ARR and 30% EBITDA margins, may be overly optimistic given current growth rates and market conditions.
TRMB FAQs
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TRMB Earning Call Sentiment
Trimble Inc. (NASDAQ:TRMB) Q4 2024 Earnings Call Transcript
TRMB.O
0.04%Positive
The earnings call summary presents strong financial performance, with revenue and ARR growth, record gross margins, and EPS beating expectations. The Q&A section highlights positive sentiment and strategic initiatives like AI and shareholder returns. Despite competitive pressures and economic factors, the increased revenue guidance and share repurchase plan indicate confidence in future growth. The positive changes in FY '25 guidance and strong customer feedback further support a positive sentiment, suggesting a stock price increase of 2% to 8% over the next two weeks.
