NASDAQ$TRMB

Trimble Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Trimble's Q3 2024 results were announced, demonstrating record ARR and gross margin, driven by the Connect & Scale strategy, and the company raised full year guidance.

Trimble announced strong Q3 2024 results, with revenue at $875.8 million and a record ARR of $2.19 billion. The company's gross margin also reached a record high. Despite a year-over-year revenue decrease, organic revenue increased by 3 percent. Trimble is raising its full year guidance.

  • Record annualized recurring revenue, reflecting ongoing execution of the Connect & Scale strategy.
  • Record gross margin, demonstrating continued business transformation and favorable mix shift.
  • Continued simplification and focusing of business via recently announced Mobility divestiture.
  • Full year guidance was raised.

Headline financials

Total Revenue

$876M

Previous: $957M-8.5%
EPS

$0.16

Previous: $0.68-76.5%
GAAP Gross Margin

65.7%

Previous: 65.0%+1.1%
GAAP Operating Margin

13.3%

Previous: 12.7%+4.7%
Adjusted EBITDA Margin

27.1%

No prior period
Capital Expenditures

-$27.5M

Previous: -$32.2M+14.6%
Free Cash Flow

$13.1M

Previous: $42.7M-69.3%
Net Income

$40.6M

Previous: $74.9M-45.8%
Operating Income

$116M

Previous: $121M-4.0%
Gross Profit

$576M

Previous: $590M-2.5%
Cash & Equivalents

$1.04B

Previous: $217M+378.3%
Total Assets

$9.87B

Previous: $9.33B+5.7%
R&D Expense

$156M

Previous: $163M-4.2%
Stock-Based Comp

$36.5M

Previous: $38.6M-5.4%

Revenue & EPS history

Trimble · Revenue · Quarterly

$876M

Q3 2024-8.5%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Trimble expects for the full year 2024, revenue between $3,625 million and $3,665 million, GAAP earnings per share of $6.25 to $6.32, and non-GAAP earnings per share of $2.79 to $2.87. For the fourth quarter of 2024, Trimble expects to report revenue between $925 million and $965 million, GAAP earnings per share of $0.52 to $0.61, and non-GAAP earnings per share of $0.83 to $0.91.

Tailwinds

  • Revenue between $925 million and $965 million is expected for Q4 2024.
  • GAAP earnings per share of $0.52 to $0.61 is expected for Q4 2024.
  • Non-GAAP earnings per share of $0.83 to $0.91 is expected for Q4 2024.
  • Full-year 2024 revenue is expected to be between $3,625 million and $3,665 million.
  • Full-year 2024 GAAP earnings per share is expected to be $6.25 to $6.32.

Headwinds

  • Full-year 2024 and fourth quarter of 2024 guidance both reflect the closing of the joint venture with AGCO which closed at the beginning of the second quarter of 2024.
  • The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, effectively integrate new acquisitions or consummate divestitures in a timely manner, or get the benefits it is expecting from its joint ventures and partnerships, including with AGCO and Platform Science.
  • The Company's results would also be negatively impacted due to weakness and deterioration in the US and global macroeconomic outlook, including slowing growth, inflationary pressures and increases in interest rates, which may affect demand for our products and services and increase our costs, adversely affecting our revenues and profitability, supply chain shortages and disruptions, the pace at which our dealers work through their inventory, changes in our distribution channels, adverse geopolitical developments and the potential impact of volatility and conflict in the political and economic environment, including conflicts in the Middle East and between Russia and Ukraine and its direct and indirect impact on our business, foreign exchange fluctuations, the pace we transition our business model towards a subscription model, the imposition of barriers to international trade, the impact of acquisitions or divestitures, and our ability to maintain effective internal controls over financial reporting, including our ability to remediate our material weaknesses in our internal controls over financial reporting.
  • Any failure to achieve predicted results could negatively impact the Company's revenue, cash flow from operations, and other financial results.
  • The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10-K.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.7%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+20.4%

Q3 2015

Best reaction

-16.0%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.2%-16.6%-20.5%
Q4 2025+2.9%-0.8%-1.2%
Q3 2025+2.5%+1.4%+6.3%
Q1 2025+4.7%+11.4%+14.1%
Q4 2024+0.6%-5.6%-6.1%
Q3 2024+17.1%+19.1%+21.5%
Q2 2024+1.5%+3.7%+12.0%
Q1 2024-6.5%-5.9%-7.3%
Q4 2023+6.6%+14.8%+20.6%
Q3 2023-11.2%-11.3%+0.5%
Q2 2023+3.7%+1.4%+2.4%
Q1 2023+3.5%+3.4%+7.8%
Q4 2022-3.7%-6.0%-19.0%
Q3 2022-13.1%-4.5%+1.9%
Q2 2022-2.9%-0.4%-11.6%
Q1 2022-8.4%-11.5%-1.9%
Q4 2021-4.3%-8.0%-8.6%
Q3 2021-2.1%+0.8%-5.3%
Q2 2021+4.2%+3.9%+10.5%
Q1 2021-5.0%-2.7%-0.1%
Q4 2020-2.2%-1.0%-1.1%
Q3 2020+6.0%+9.2%+19.6%
Q2 2020+8.7%+7.3%+10.7%
Q1 2020+11.0%+13.0%+37.4%
Q4 2019+2.5%+3.6%-35.3%
Q3 2019+0.7%+4.0%+2.5%
Q2 2019-14.2%-16.4%-15.6%
Q1 2019+3.2%+5.1%-2.3%
Q4 2018-0.1%+0.7%-0.5%
Q3 2018+2.1%-2.5%+1.7%
Q2 2018+15.2%+10.7%+19.3%
Q1 2018+0.4%-1.0%-0.2%
Q4 2017-6.7%-3.8%-3.4%
Q3 2017+4.1%-0.8%+2.2%
Q2 2017+0.9%+0.9%+3.1%
Q1 2017+9.6%+11.4%+10.6%
Q4 2016+5.5%+4.5%+4.8%
Q3 2016-7.1%-6.4%+0.1%
Q2 2016+0.6%+3.5%+1.8%
Q1 2016-7.6%
Q4 2015+12.3%
Q3 2015+20.4%
Q2 2015-16.0%
Q1 2015+2.7%
Q4 2014-0.3%
Q3 2014-11.0%
Q2 2014+3.4%
Q1 2014-8.9%
Q4 2013+16.1%
Q3 2013+17.7%
Q2 2013+2.4%
Q1 2013-6.5%
Q4 2012-2.8%
Q3 2012+11.7%
Q2 2012-1.6%
Q1 2012-0.0%
Q4 2011-1.5%
Q3 2011-1.5%
Q2 2011-1.2%
Q1 2011+2.6%
Q4 2010-0.7%
Q4 2009-0.7%
Q3 2010-2.3%
Q1 2010-4.0%
Q2 2010-4.0%

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