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Valued at a market cap of $14.7 billion, Trimble Inc. (TRMB) is an equipment manufacturer of positioning, surveying, and machine control products. The Westminster, Colorado-based company’s product portfolio is centered on the integration of real-time positioning or location technologies with wireless communications and software. It is expected to announce its fiscal Q3 earnings results on Wednesday, Nov. 6.
Ahead of this event, analysts expect the software company to report a profit of $0.49 per share, down 12.5% from $0.56 per share in the year-ago quarter. The company has consistently beaten Wall Street's bottom-line estimates in each of the last four quarters. In Q2, the company’s adjusted EPS of $0.62 topped the consensus estimates by 8.8% but declined 3.1% annually.
For fiscal 2024, analysts expect TRMB to report an EPS of $2.23, up 1.4% from $2.20 in fiscal 2023. Moreover, EPS is expected to increase 10.8% year-over-year to $2.47 in fiscal 2025.
Shares of TRMB have gained 13.8% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 21.8% rise and the Technology Select Sector SPDR Fund’s (XLK) 19% return over the same period.
On Aug. 6, shares of TRMB closed up 3.4% after its Q2 earnings release as, along with its adjusted earnings, its revenue of $870.8 million surpassed the Wall Street estimates of $860.8 million. However, its revenue declined 12% from a year ago, mainly due to a fall in its field systems revenues. Nonetheless, the company’s record annualized recurring revenue of $2.11 billion, which grew 12% on an annual basis, record Q2 gross margin, and raised full-year 2024 revenue and EPS guidance, might have further contributed to its upward price movement.
Analysts' consensus view on Trimble’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 12 analysts covering the stock, seven recommend a "Strong Buy," one suggests a "Moderate Buy," three indicate a “Hold,” and one recommends a “Strong Sell” rating.
The average analyst price target for TRMB is $70.43, indicating a 16.3% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
