Shares of positioning technology provider Trimble (NASDAQ:TRMB) tanked by nearly 5% today after the company announced its results for the fourth quarter. Revenue increased by 8.9% year-over-year to $932.4 million, outpacing estimates by roughly $24 million. EPS of $0.63 also came in ahead of expectations by $0.04.
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During the quarter, annualized recurring revenue (ARR) jumped by 24% to $1.98 billion, and revenue in the Subscription & Services vertical increased to $529.6 million from $440.7 million in the year-ago period. In contrast, Product revenue trended lower to $402.8 million from $415.8 million.
Further, the company’s non-GAAP operating income margin improved to 24.3% from 21.9% in the year-ago quarter. For Fiscal Year 2024, Trimble anticipates revenue in the range of $3,570 million to $3,670 million and EPS between $2.60 and $2.80.
For the upcoming quarter, the company expects revenue in the range of $905 million to $935 million. EPS is seen landing between $0.57 and $0.62.
Is Trimble a Good Stock to Buy?
Overall, the Street has a Moderate Buy consensus rating on Trimble, and the average TRMB price target of $57.50 points to a modest 9.5% potential upside in the stock. That’s after a nearly 28.6% rise in the company’s share price over the past three months.
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