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Trimble rises 4% as Q1 revenue exceeds estimates

EditorRachael Rajan
Published 05/03/2024, 08:40 AM
© Reuters.

WESTMINSTER, Colo. - Trimble Inc. (NASDAQ: TRMB) delivered a solid start to the year, surpassing analyst revenue expectations for the first quarter of 2024. TRMB shares were trading up 4.8% premarket.

The company reported a first-quarter revenue of $953.3 million, a 4% increase from the same quarter last year, and above the consensus estimate of $912.15 million. Adjusted EPS for the quarter was $0.64, slightly ahead of the analyst estimate of $0.62.

The growth was attributed to a record annualized recurring revenue (ARR) which reached $2.03 billion, marking a 23% year-over-year (YoY) increase and a 13% organic basis increase. GAAP operating income for the quarter stood at $109.2 million, or 11.5% of revenue, while non-GAAP operating income reached $234.4 million, representing 24.6% of revenue. Adjusted EBITDA was reported at $250.9 million, or 26.3% of revenue.

Rob Painter, Trimble's president and CEO, expressed satisfaction with the company's performance, noting, "We had a strong start to the year, delivering record annualized recurring revenue of $2.03 billion and record first quarter gross margin."

Looking ahead, Trimble provided guidance for the full year of 2024 with expected revenue between $3.57 billion and $3.67 billion and adjusted EPS of $2.60 to $2.80. This guidance falls slightly below the analyst consensus of $3.613 billion in revenue and $2.73 adjusted EPS. For the second quarter of 2024, the company anticipates revenue between $845 million and $875 million, compared to the consensus of $881 million, and adjusted EPS of $0.56 to $0.60, which is below the consensus of $0.61.

Trimble's guidance reflects the recent closing of their agriculture joint venture with AGCO, which took place at the beginning of the second quarter of 2024. The company's forward-looking guidance is based on the assumption of a tax rate of 17.3 percent and approximately 247 million average shares outstanding.

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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