WESTMINSTER, Colo. - Trimble Inc. (NASDAQ: TRMB) delivered a solid start to the year, surpassing analyst revenue expectations for the first quarter of 2024. TRMB shares were trading up 4.8% premarket.
The company reported a first-quarter revenue of $953.3 million, a 4% increase from the same quarter last year, and above the consensus estimate of $912.15 million. Adjusted EPS for the quarter was $0.64, slightly ahead of the analyst estimate of $0.62.
The growth was attributed to a record annualized recurring revenue (ARR) which reached $2.03 billion, marking a 23% year-over-year (YoY) increase and a 13% organic basis increase. GAAP operating income for the quarter stood at $109.2 million, or 11.5% of revenue, while non-GAAP operating income reached $234.4 million, representing 24.6% of revenue. Adjusted EBITDA was reported at $250.9 million, or 26.3% of revenue.
Rob Painter, Trimble's president and CEO, expressed satisfaction with the company's performance, noting, "We had a strong start to the year, delivering record annualized recurring revenue of $2.03 billion and record first quarter gross margin."
Looking ahead, Trimble provided guidance for the full year of 2024 with expected revenue between $3.57 billion and $3.67 billion and adjusted EPS of $2.60 to $2.80. This guidance falls slightly below the analyst consensus of $3.613 billion in revenue and $2.73 adjusted EPS. For the second quarter of 2024, the company anticipates revenue between $845 million and $875 million, compared to the consensus of $881 million, and adjusted EPS of $0.56 to $0.60, which is below the consensus of $0.61.
Trimble's guidance reflects the recent closing of their agriculture joint venture with AGCO, which took place at the beginning of the second quarter of 2024. The company's forward-looking guidance is based on the assumption of a tax rate of 17.3 percent and approximately 247 million average shares outstanding.
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