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Title: Trimble Q4 Earnings Beat Estimates, Shares Rise

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Published Feb 12, 2024 01:16PM ET

Title: Trimble Q4 Earnings Beat Estimates, Shares Rise © Reuters.

WESTMINSTER, Colo. – Trimble Inc. (NASDAQ: TRMB) reported a solid finish to fiscal year 2023, surpassing analyst expectations for the fourth quarter with an earnings per share (EPS) of $0.63, which was $0.03 higher than the consensus estimate of $0.60.

The company’s revenue for the quarter also exceeded forecasts, coming in at $932.4 million against the anticipated $911.71 million.

The company’s fourth-quarter performance marked a 9% increase in revenue on a YoY basis, with annualized recurring revenue (ARR) reaching a record $1.98 billion, up 24% YoY.

Trimble’s president and CEO, Rob Painter, attributed this growth to a record level of ARR, Gross Margin, and Adjusted EBITDA. “We enter 2024 with resolve to continue executing our strategy and returning capital to shareholders, while navigating macroeconomic uncertainties,” said Painter.

Looking ahead, Trimble provided guidance for the full-year 2024, projecting revenue to be between $3.57 billion and $3.67 billion with an adjusted EPS of $2.60 to $2.80. This forecast falls short of the consensus revenue estimate of $3.84 billion but brackets the consensus EPS estimate of $2.72.

For the first quarter of 2024, the company expects revenue between $905 million and $935 million and an adjusted EPS of $0.57 to $0.62.

Investors reacted positively to the earnings report and guidance, with Trimble’s stock price increasing by 3.6%. This uptick reflects a favorable market response to the company’s financial performance and its strategic outlook for the coming year.

Trimble’s full-year 2023 figures also showed growth, with a 3% increase in revenue YoY. The company’s GAAP operating income was reported at $448.8 million, which is 11.8% of revenue, and its non-GAAP operating income stood at $934.7 million, or 24.6% of revenue. Additionally, Trimble repurchased approximately 2.4 million shares for $100.0 million during the fiscal year.

The company’s forward-looking guidance for 2024 assumes the closure of a joint venture with AGCO at the beginning of the second quarter, which could be a strategic move for future growth.

Trimble’s solid financial results and the optimistic response from the market indicate a strong position as the company moves into the new fiscal year, despite acknowledging the challenges posed by the current macroeconomic environment.

InvestingPro Insights

As Trimble Inc. (NASDAQ: TRMB) wraps up a robust fiscal year 2023, it’s worth noting that the company has been trading at a high earnings multiple, with a P/E ratio of 39.99, reflecting investor confidence in its future growth prospects. The stock has shown a strong return over the last three months, with a 25.47% price total return, which aligns with the positive market reaction to its recent earnings report and forward guidance.

Trimble’s stock generally trades with low price volatility, suggesting that it could be a stable addition to investment portfolios. The company’s revenue for the last twelve months as of Q1 2023 stood at $3.722 billion, with a notable gross profit margin of 63.44%, demonstrating its ability to maintain profitability in its operations. It’s also important to highlight that analysts predict Trimble will remain profitable this year, which may provide further reassurance to investors.

For those looking to delve deeper into Trimble’s financials and future prospects, InvestingPro offers a wealth of additional insights. Currently, there are 7 more InvestingPro Tips available, which can help investors make more informed decisions. To explore these tips and gain a comprehensive understanding of Trimble’s investment potential, visit https://www.investing.com/pro/TRMB. For added value, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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