Stock of the Day - December 25, 2020

Trimble (TRMB)

$58.83

-$1.11 (-1.8%)

Market Cap: $13.76B

About Trimble

Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The company's Buildings and Infrastructure segment offers field and office software for project design and visualization; systems to guide and control construction equipment; software for 3D design and data sharing; systems to monitor, track, and manage assets, equipment, and workers; software to share and communicate data; program management solutions for construction owners; 3D conceptual design and modeling software; building information modeling software; enterprise resource planning, project management, and project collaboration solutions; integrated site layout and measurement systems; cost estimating, scheduling, and project controls solutions; and applications for sub-contractors and trades.

Its Geospatial segment provides surveying and geospatial products, and geographic information systems. The company's Resources and Utilities segment offers precision agriculture products and services, such as guidance and positioning systems, including autonomous steering systems, automated and variable-rate application and technology systems, and information management solutions; manual and automated navigation guidance for tractors and other farm equipment; solutions to automate application of pesticide and seeding; water solutions; and agricultural software. Its Transportation segment offers solutions for long haul trucking and freight shipper markets; mobility solutions comprising route management, safety and compliance, end-to-end vehicle management, video intelligence, and supply chain communications; and fleet and transportation management systems, analytics, routing, mapping, reporting, and predictive modeling solutions. The company was formerly known as Trimble Navigation Limited and changed its name to Trimble Inc. in October 2016. Trimble Inc. was founded in 1978 and is headquartered in Westminster, Colorado.

Today's Trend

Trimble Inc. (NASDAQ:TRMB) shares increased as investors weighed a strong second-quarter earnings beat, higher full-year guidance and a new share-repurchase authorization against concerns about a large transportation-business impairment and a relatively soft near-term outlook.

Trimble reported second-quarter adjusted earnings of $0.86 per share, exceeding the $0.80 consensus estimate, while revenue rose 11% year over year to $972 million, above expectations of approximately $952 million. Field Systems performance, recurring-revenue growth and improved margins supported the results. Trimble Q2 Earnings Beat Estimates on Field Systems Strength
Management raised fiscal 2026 guidance to revenue of roughly $3.90 billion-$3.95 billion and non-GAAP EPS of $3.60-$3.70, above the prior outlook and the $3.47 analyst consensus for EPS. Annualized recurring revenue reached a record $2.51 billion. Trimble Announces Second Quarter 2026 Results and Raises Full Year Guidance
The board authorized a new $1 billion share-repurchase program, potentially supporting per-share value and signaling confidence in Trimble’s cash-generation outlook. Transportation revenue also increased 5%, with management citing early signs of improvement in freight markets. Trimble sees freight green shoots as transportation revenue rises 5%
JPMorgan raised its price target to $76 and reaffirmed an overweight rating, while Piper Sandler maintained its overweight rating with an $87 target. These targets imply substantial potential upside from recent trading levels.
Third-quarter EPS guidance of $0.83-$0.88 brackets the $0.84 consensus estimate, while projected revenue of $953 million-$978 million is broadly consistent with expectations. This suggests continued growth but limited near-term upside surprises.
Trimble recorded a $562 million goodwill impairment in its Transportation and Logistics segment, producing a GAAP net loss of approximately $472 million despite much stronger adjusted earnings. The charge may weigh on sentiment and highlights ongoing challenges in that business. Trimble Slides as Transportation Unit Impairment Overshadows Strong Q2
Some investors viewed the outlook as modest, particularly the third-quarter guidance near consensus, which could limit enthusiasm after the earnings beat. Recent reported insider activity also showed sales without purchases, although such transactions are not necessarily indicative of business fundamentals.

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