Advanced Manufacturing and Factory Automation Company Trimble Stock Slides After Q1 Print, What's Going On?

Zinger Key Points
  • Trimble Q1 revenue grows to $953.3M, beating expectations; adjusted EPS of $0.64 surpasses forecasts, driving stock gains.
  • Annualized recurring revenue rises to $2.03B; Trimble sees strong start with record ARR and gross margin.

Trimble Inc TRMB reported a fiscal first-quarter 2024 revenue growth of 4% to $953.30 million, beating the consensus of $912.53 million. Revenue growth was flat Y/Y on an organic basis.

The adjusted EPS of $0.64 beat the consensus of $0.62. The stock price gained after the results in the premarket session, only to fall after the market opened.

Annualized recurring revenue was $2.03 billion, up 23% Y/Y on an organic basis.

Product revenue declined 15.5% Y/Y to $367.1 million. Subscription and services grew by 21.9% Y/Y to $586.2 million. 

The adjusted gross margin expanded by 160 bps to 65.8%. 

Trimble held $255.1 million in cash and equivalents as of the first quarter of 2024.

“We had a strong start to the year, delivering record annualized recurring revenue of $2.03 billion and record first quarter gross margin.  And on April 1, we closed our agriculture joint venture with AGCO,” said Rob Painter, Trimble’s president and chief executive officer.

FY24 Outlook: Trimble reiterated fiscal 2024 revenue of $3.57 billion – $3.67 billion, below the consensus of $3.61 billion.

It also maintained adjusted EPS of $2.60 – $2.80 against the Street view of $2.73.

Trimble expects second-quarter revenue of $845 million – $875 million (consensus $881 million) and adjusted EPS of $0.56 – $0.60 (consensus $0.61).

Trimble stock gained 27% in the last 12 months. Investors can gain exposure to the stock via Procure Space ETF UFO and IShares Emergent Food And AgTech Multisector ETF IVEG.

Price Action: TRMB shares traded higher by 5.25% at $56.92 on the last check Friday.

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