Trimble Q2 Revenue Spikes 14%, But Industry Woes Impact Hardware Sales

Trimble Inc TRMB reported a fiscal second-quarter 2024 revenue decline of 12% to $870.8 million, beating the analyst consensus estimate of $862.5 million. Revenue growth was 1% year-over-year (Y/Y) on an organic basis.

The GPS navigation maker’s adjusted EPS of 62 cents beat the analyst consensus estimate of $0.58.

High interest rates and input costs have affected mobility and agriculture businesses, reducing the demand for hardware products and services from companies like Trimble, the Print reports.

Annualized recurring revenue was $2.11 billion, up 14% Y/Y on an organic basis.

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Product revenue declined 34.7% Y/Y to $320.4 million. Subscription and services grew by 9.4% Y/Y to $550.4 million. 

The adjusted gross margin expanded by 230 bps to 66.5%. 

Trimble held $944.1 million in cash and equivalents as of the second quarter of 2024.

FY24 Outlook: Trimble expects fiscal 2024 revenue of $3.59 billion–$3.67 billion (prior $3.57 billion–$3.67 billion), below the consensus of $3.63 billion.

It also maintained adjusted EPS of $2.60–$2.81 (prior $2.60–$2.80) against the Street view of $2.73.

Trimble expects third-quarter revenue of $840 million–$880 million (consensus $871.14 million) and adjusted EPS of $0.58–$0.64 (consensus $0.63). The third-quarter guide reflects weak demand for its products and services in a volatile economy.

Trimble stock lost 7% in the last 12 months.

Price Action: TRMB stock traded higher by 3.38% at $51.51 at the last check Tuesday.

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