Despite an ongoing freight recession, Trimble Inc.’s transportation and logistics segment performed well during the third quarter, growing revenue 1.4% year over year to $195 million.
“Transportation and logistics beat our top- and bottom-line expectations,” President and CEO Rob Painter said during a call with analysts before the market opened on Wednesday. “Transportation delivered double-digit annual recurring revenue growth. … While the freight recession persists, the transportation team delivered a record level of third-quarter bookings, which was also the second-largest in the history of the business in a dynamic macro-environment.”
Trimble (NASDAQ: TRMB) is a provider of technology solutions for trucking companies, freight brokerages and 3PLs. The company also operates in industries such as buildings and infrastructure, geospatial hardware and software, and resources and utilities.
For the fourth quarter, Trimble expects to report revenue between $925 million and $965 million and adjusted earnings per share of 83 cents to 91 cents. For the full year, the company expects revenue between $3.62 billion and $3.66 billion and adjusted EPS of $2.79 to $2.87.
Trimble posted total third-quarter revenue of $875.8 million, an 8.5% year-over-year decrease. Third-quarter earnings were 70 cents per share, a year-over-year increase of 3%.
Trimble’s third-quarter earnings and revenue beat Wall Street expectations, which had forecast earnings of 62 cents per share and revenue of $864.5 million.
Related: Trimble and Platform Science pushed hard to get deal done before Vegas meeting
In September, Platform Science announced it would acquire Trimble’s global transportation telematics business units.
As part of the agreement, Trimble will become a shareholder in Platform Science’s expanded business and hold a 32.5% stake. The transaction is expected to close in the first half of 2025.
The divestiture of the mobility unit will improve Trimble’s transportation metrics, as well as growth and profitability, Painter said.
“I feel very good about the transaction that we’re doing with Platform Science. I think together, this will be a scaled business that is well positioned to compete in today’s marketplace,” Painter said.
TrimbleQ3/24Q3/23Y/Y % ChangeTotal revenue$875.8$957.3(8.5%)Transportation and logistics revenue$195$192.31.4%Architects, engineers, construction, owners segment revenue$306$269.614%Field systems$374.6$495.4(24%)Adjusted EBITDA$237.4$268.2(11%)Adjusted operating income$224.8$251(10%)Adjusted earnings per share$0.70$0.683%Trimble Inc.’s key third-quarter performance indicators. $ in millions except earnings per share.
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