Trimble Inc.
TRMB
reported fourth-quarter 2020 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 17.3%. Notably, the bottom line improved 1.7% sequentially and 15.1% year over year.
Per management, non-GAAP revenues were up 0.4% year over year to $830 million.
Further, the company’s GAAP revenues were $829.7 million, which surpassed the Zacks Consensus Estimate by 5.3%. Also, the figure was up 1% year over year.
The top line was driven by strength in overall demand environment. Further, strong segmental performance aided the results.
Product revenues
(accounting for 59.1% of GAAP revenues) totaled $490.4 million, up 5.1% on a year-over-year basis.
Services revenues
(19.9% of revenues) were $165.1 million, down 10.5 % year over year.
Subscription revenues
(21% of revenues) improved 0.6% from the year-ago quarter to $174.2 million.
Its cost-control strategies are expected to drive profitability in the near term. Further, the company’s acquisition strategy remains a major positive and is likely to aid the stock to rebound in the long haul.
Trimble Inc. Price, Consensus and EPS Surprise
Trimble Inc. price-consensus-eps-surprise-chart
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Trimble Inc. Quote
Operating Details
For the fourth quarter, non-GAAP gross margin came in at 59.4%, expanding 40 basis points (bps) year over year.
Adjusted operating expenses accounted for 35.7% of non-GAAP revenues, contracting 150 bps from the year-ago quarter. The decrease was due to structural actions and temporary factors associated with the COVID-19 pandemic.
Consequently, non-GAAP operating margin came in at 23.7%, which expanded 190 bps year over year.
Balance Sheet
At the end of fourth-quarter 2020, cash and cash equivalents were $237.7 million, up from $184 million at the end of third-quarter 2020. Inventories were $301.7 million, down from $318.5 million in the previous quarter.
Long-term debt was $1.29 billion at fourth quarter-end compared with $1.39 billion at third quarter-end.
Further, the company generated $188 million of cash from operations compared with $181 million in the third quarter.
Trimble generated free cash flow of $177 million for the reported quarter.
Guidance
For full-year 2021, it expects GAAP revenues in the range of $3.3-$3.4 billion and GAAP earnings within $1.31-$1.54 per share.
Non-GAAP revenues are expected in the range of $3.3-$3.4 billion and non-GAAP earnings per share within $2.25-$2.45.
Zacks Rank & Key Picks
Trimble currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include
Semtech Corporation
SMTC
,
KLA Corporation
KLAC
and
Garmin Ltd.
GRMN
, each carrying a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Long-term earnings growth for Semtech, KLA Corp. and Garmin is currently projected at 12.5%, 11.6% and 6.8%, respectively.
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