Geospatial technology provider Trimble (NASDAQ:TRMB) will be announcing earnings results tomorrow before the bell. Here’s what to look for.
Trimble beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $875.8 million, down 8.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Trimble a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Trimble’s revenue to grow 1.2% year on year to $943.4 million, slowing from the 8.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.89 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Trimble has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Trimble’s peers in the internet of things segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Rockwell Automation’s revenues decreased 8.3% year on year, missing analysts’ expectations by 0.6%, and Vontier reported a revenue decline of 1.5%, topping estimates by 1.5%. Rockwell Automation traded up 13.3% following the results while Vontier was also up 4.2%.
Read our full analysis of Rockwell Automation’s results here and Vontier’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the Internet of Things stocks have shown solid performance, the group has generally underperformed, with share prices down 4.5% on average over the last month. Trimble is down 2.3% during the same time and is heading into earnings with an average analyst price target of $86.17 (compared to the current share price of $74.64).
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