Trimble (TRMB) Q1 Earnings and Revenues Trump Estimates

Trimble TRMB reported first-quarter 2021 non-GAAP earnings of 66 cents per share that beat the Zacks Consensus Estimate by 17.9% and surged 34.7% year over year.

Non-GAAP revenues were up 11.7% year over year to $886.7 million and comfortably surpassed the consensus mark by 7.4%.

Annualized recurring revenues were $1.32 billion, up 9% year over year.

Top-Line Details

Product revenues (60.8% of revenues) totaled $539.4 million, up 16.3% year over year. Subscription revenues (20.8% of revenues) improved 11.3% from the year-ago quarter to $184.8 million.

However, Service revenues (18.3% of revenues) were $162.3 million, down 0.1% year over year.

Trimble Inc. Price, Consensus and EPS Surprise

Trimble Inc. Price, Consensus and EPS Surprise

Trimble Inc. price-consensus-eps-surprise-chart | Trimble Inc. Quote

Segment wise, Buildings and Infrastructure revenues (38.7% of revenues) increased 15.6% year over year to $343.1 million. Geospatial revenues (20.5% of revenues) were $181.7 million, up 24.3% year over year. Moreover, revenues from Resources and Utilities (23.1% of revenues) increased 13.8% year over year to $205.2 million.

However, Transportation revenues (17.7% of revenues) declined 8.1% year over year to $156.7 million.

Operating Details

Non-GAAP gross margin in first quarter came in at 58.4%, contracting 70 basis points (bps) year over year.

As percentage of revenues, adjusted operating expenses declined 400 bps to 34.8%. While research & development and sales & marketing expenses as percentage of revenues declined 30 bps and 280 bps, respectively, general & administrative expenses increased 40 bps on a year-over-year basis.

Adjusted EBITDA margin increased 340 bps year over year to 26.1%.

Non-GAAP operating margin came in at 23.6%, which expanded 330 bps year over year.

Segment wise, Buildings and Infrastructure operating margin surged 760 bps to 28.1%. Geospatial operating margin jumped 590 bps to 26.8% year over year. Moreover, Resources and Utilities operating margin expanded 190 bps on a year-over-year basis to 39%.

However, Transportation operating margin contracted 450 bps to 5.4%.

Balance Sheet

As of Mar 31, 2021 cash and cash equivalents were $264.6 million, up from $237.7 million as of Dec 31, 2020.

Trimble’s total debt was $1.39 billion as of Mar 31, 2021, down from $1.55 billion as of Dec 31, 2020.

Further, Trimble generated $228.2 million of cash from operations in the first quarter of 2021 compared with $188 million in the fourth quarter of 2020.

Moreover, Trimble generated free cash flow of $217.6 million for the reported quarter.

Guidance

For full-year 2021, Trimble expects non-GAAP revenues roughly in the range of $3.40-$3.50 billion and earnings within $2.30-$2.50 per share.

Zacks Rank & Stocks to Consider

Trimble currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include Synaptics SYNA, Agilent Technologies A and NVIDIA NVDA. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Synaptics, Agilent and NVIDIA are set to report their earnings results on May 6, 20 and 26, respectively.

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