#Garmin #Stock #Flies #Higher #Company #Beats #Estimates #Boosts #Outlook
Key takeaways
- Garmin reported better than expected results and gave an optimistic outlook as sales of all its business units increased.
- CEO Cliff Pemble said the company’s “momentum” continues into the key holiday shopping season. Garmin boosted its full-year earnings and revenue guidance.
- The stock jumped to record levels in Wednesday’s trading.
Shares of Garmin ( GRMN ) rose significantly on Wednesday, hitting record highs, as the navigation and communications equipment maker easily beat earnings and sales estimates and provided investors with a positive outlook.
The company reported third-quarter adjusted earnings per share (EPS) of $1.99, with revenue up 24% to $1.59 billion. Analysts surveyed by Visible Alpha were expecting $1.44 billion and $1.44 billion, respectively.
Garmin shares recently rose 24% to about $207.
Revenues were driven higher by sales in its automotive OEM unit, which jumped 53%. Sales also rose in its other divisions, rising by 31% in the fitness division, 22% in the marine division, 21% in the outdoor division, and 3% in the aviation division.
Garmin is boosting its outlook “based on the results we have achieved to date and the momentum we are seeing as we enter the important holiday sales season,” CEO Cliff Pemble said.
The company now sees full-year adjusted EPS of $6.85 versus its previous guidance of $6.00. It expects revenues of $6.12 billion compared to the previous forecast of $5.95 billion. Wall Street is looking for revenue of about $6 billion and earnings per share of $6.08.
Garmin shares are up about 60% so far in 2024.
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#Garmin #Stock #Flies #Higher #Company #Beats #Estimates #Boosts #Outlook
