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Westminster, Colorado-based Trimble Inc. (TRMB) is an original equipment manufacturer of positioning, surveying, and machine control products. With a market cap of $17.7 billion, Trimble amalgamates the physical and digital worlds through hardware, software, and services for industries like agriculture, construction, geospatial, and transportation.
Trimble has substantially outpaced the broader market over the past year. TRMB stock has surged 36.6% on a YTD basis and 72.9% over the past 52-week period outperforming the S&P 500 Index’s ($SPX) 25.7% gains in 2024 and 36.8% returns over the past year.
Narrowing the focus, Trimble has also outperformed the Technology Select Sector SPDR Fund’s (XLK) 23.2% gains on a YTD basis and 34.9% returns over the past 52 weeks.
TRMB stock prices soared 17.9% after the release of its better-than-expected Q3 earnings on Nov. 6. The company has demonstrated its focused approach towards execution and growth with the announcement of Mobility divestiture, which will further simplify and focus the company’s business. Moreover, it observed a robust 3.5% gross margin expansion with its adjusted gross margins reaching a record 68.5%.
Although its total revenues declined 8.5% compared to the year-ago quarter to $875.8 million due to a decrease in product sales, its revenues were up 3% on an organic basis and exceeded Wall Street’s topline expectations by a modest 1.1%. Moreover, its adjusted EPS of $0.70 also surpassed analysts’ estimates by a large margin, bolstering investors’ confidence.
For the current fiscal year, ending in December, analysts expect Trimble to report a 2.3% year-over-year growth in adjusted EPS to $2.25. Moreover, the company has a robust earnings surprise history. It has surpassed Wall Street’s bottom-line estimates in each of the past four quarters.
TRMB has a consensus “Moderate Buy” rating overall. Among the 12 analysts covering the stock, seven recommend “Strong Buy,” one advises “Moderate Buy,” three suggest “Hold,” and one advocates a “Strong Sell” rating.
The configuration has been consistent over the past three months.
On Nov. 8, Baird analyst Richard Eastman maintained the a “Buy” rating on TRMB, while raising the price target to $82.
While TRMB's mean price target of $75.14 represents a modest premium of 3.4% to current price levels, the Street-high target of $84 suggests a potential upside of 15.6%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
