Trimble Inc  reported a fiscal third-quarter 2024 revenue decline of 9% to $875.8 million, beating the analyst consensus estimate of $864.5 million.

Revenue growth was 3% year-over-year (Y/Y) on an organic basis.

The GPS navigation maker’s adjusted EPS of 70 cents beat the analyst consensus estimate of 62 cents. The stock price climbed after the print.

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Annualized recurring revenue was $2.19 billion, up 13% Y/Y on an organic basis.

Product revenue declined 30.7% year-over-year, to $307.6 million.

Subscription and services grew by 10.7% Y/Y to $568.2 million. 

The adjusted gross margin expanded by 350 bps to 68.5%. 

Trimble held $1.04 billion in cash and equivalents as of the third quarter 2024.

Trimble CEO Rob Painter, highlighted the team’s strong quarterly performance. The team exceeded both revenue and earnings targets and achieved a record $2.19 billion in ARR and a 68.5% gross margin. He noted continued advancements in the Connect & Scale strategy, emphasizing that the recent Mobility divestiture will help streamline and sharpen Trimble’s focus.

FY24 Outlook: Trimble expects fiscal 2024 revenue of $3.625 billion–$3.665 billion (prior $3.59 billion–$3.67 billion), below the consensus of $3.63 billion.

It also projected adjusted EPS of $2.79–$2.87 (prior $2.60–$2.81) against the Street view of $2.75.

Trimble expects fourth-quarter revenue of $925 million–$965 million (consensus $942.79 million) and adjusted EPS of $0.83–$0.91 (consensus $0.88).

Price Action: TRMB stock is up 9.54% at $67.50 premarket at the last check Wednesday.

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