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Key Takeaways
- Garmin posted better-than-expected results and gave an optimistic outlook as all its business units increased sales.
- CEO Cliff Pemble said the company’s “momentum” is carrying over into the key holiday shopping season. Garmin boosted its full-year earnings and revenue guidance.
- The stock jumped to record highs in Wednesday trading.
Shares of Garmin (GRMN) skyrocketed Wednesday, touching record highs, as the navigation and communication equipment maker easily beat profit and sales estimates and offered investors a positive outlook.
The company reported third quarter adjusted earnings per share (EPS) of $1.99, with revenue climbing 24% to $1.59 billion. Analysts surveyed by Visible Alpha were anticipating $1.44 and $1.44 billion, respectively.
Garmin’s shares were recently up some 24% to around $207.
Revenue was driven higher by sales at its Auto Original Equipment Manufacturer unit, which jumped 53%. Sales were up as well at its other divisions, rising 31% at Fitness, 22% at Marine, 21% at Outdoor and 3% at Aviation.
CEO Cliff Pemble said that Garmin was boosting its outlook “based on the results we have achieved so far and the momentum we are experiencing as we enter the important holiday selling season.”
The company now sees full-year adjusted EPS of $6.85 versus its earlier guidance of $6.00. It expects revenue of $6.12 billion compared to the previous prediction of $5.95 billion. Wall Street is looking for revenue of around $6 billion and EPS of $6.08.
Shares of Garmin are up about 60% so far in 2024.
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