Garmin Shares Soar as Company Surpasses Earnings Expectations and Raises Forecast
Garmin delivers impressive quarterly results with robust sales growth across all divisions, leading to an upgraded full-year outlook.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, guiding teams through major news coverage.
Highlights
- Garmin exceeded earnings forecasts and provided an optimistic future outlook, driven by strong sales in every business segment.
- CEO Cliff Pemble highlighted sustained momentum heading into the crucial holiday shopping period, prompting an increase in full-year earnings and revenue projections.
- The stock surged to all-time highs during Wednesday’s trading session.
Shares of Garmin (GRMN) surged to record levels on Wednesday after the company reported third-quarter results that outpaced analyst expectations and projected continued growth. The navigation and communication technology leader posted adjusted earnings per share (EPS) of $1.99, significantly surpassing the anticipated $1.44. Revenue climbed 24% year-over-year to $1.59 billion, beating the forecast of $1.44 billion.
Following the earnings announcement, Garmin’s stock price jumped approximately 24%, reaching around $207 per share.
Revenue gains were primarily driven by a 53% increase in sales from the Auto Original Equipment Manufacturer segment. Other divisions also experienced notable growth, with Fitness sales up 31%, Marine up 22%, Outdoor up 21%, and Aviation up 3%.
CEO Cliff Pemble expressed confidence in the company’s trajectory, stating, “We are raising our outlook based on the strong results delivered so far and the positive momentum as we head into the vital holiday sales season.”
Garmin now anticipates full-year adjusted EPS of $6.85, up from the previous guidance of $6.00, and expects revenue to reach $6.12 billion compared to the earlier estimate of $5.95 billion. Wall Street consensus estimates were approximately $6 billion in revenue and $6.08 in EPS.
Year-to-date, Garmin’s shares have appreciated by roughly 60% in 2024.
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