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Trimble Inc. (TRMB), headquartered in Westminster, Colorado, provides tech solutions for positioning, surveying, and machine control products. With a market cap of $13.6 billion, Trimble delivers enterprise and mobility solutions for the long-haul trucking industry utilizing GPS, GNSS, and optical and laser systems.
Shares of the services tech company have underperformed the broader market over the past year. TRMB has soared 17.6% over this time frame, while the broader S&P 500 Index ($SPX) is up 24.5%. In 2024, the stock has surged 4.3%, compared to SPX’s 9.8% return on a YTD basis.
However, on narrowing the focus, TRMB has outshined the Ark Space Exploration & Innovation ETF’s (ARKX) 11.2% gain over the past year.
Despite surpassing expectations and management reaffirming full-year guidance, shares of Trimble declined following its Q1 earnings results on May 3. The drop was not due to the financial result but rather stemmed from a delay in releasing the first-quarter SEC filing and an amended 2023 annual filing, attributed to a financial controls issue. Although TRMB’s management and independent registered public accounting firm Ernst & Young LLP assured that the financial figures remain unaffected, investor caution arose due to the delay and concerns regarding oversight.
For the current fiscal year, ending in December, analysts expect TRMB’s EPS to rise marginally year over year to $2.21. Moreover, the company’s earnings surprise history is promising. It beat the consensus estimates in all of the last four quarters.
Among the 12 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” three “Holds,” and one “Strong Sell.”
This configuration has been consistent over the past months.
On May 15, Raymond James analyst Brian Gesuale reaffirmed an “Outperform” rating on Trimble and kept the price target at $65.
The mean price target of $64.38 suggests a 16% premium to TRMB from current levels. The Street-high target of $73 represents an impressive upside potential of 31.5%.
On the date of publication, Kritika Sarmah 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.
