Garmin Shares Soar 11% on Strong Earnings and Upgraded Outlook

NEW YORK - Garmin Ltd. (NYSE:GRMN) shares rose 11% on Wednesday after the company reported third-quarter earnings significantly surpassing analyst expectations and raised its year-end guidance. The GPS technology company announced adjusted earnings of $1.99 per share for the third quarter, exceeding the analyst consensus of $1.44 by $0.55. Revenue came in at $1.59 billion, surpassing predictions of $1.44 billion and marking a 24% increase year-over-year.

Garmin’s strong performance was driven by growth across all business segments; fitness revenue increased by 31%, and outdoor revenue rose by 21% year-over-year. The company’s gross profit margin increased to 60.0%, while the operating profit margin rose to 27.6%.

Garmin's President and CEO, Cliff Pemble, stated, "Our highly differentiated and innovative products resonate with customers, once again yielding impressive financial results."

Looking ahead, Garmin raised its full-year outlook for 2024. The company now expects approximately $6.12 billion in revenue, higher than its previous forecast and above the analyst consensus of $5.988 billion. Garmin also increased its adjusted earnings per share guidance to $6.85, significantly above the $6.08 expected by analysts.

The positive results and outlook led investors to boost Garmin shares by 11% in early trading. The company's ability to increase sales and expand margins in the current economic environment seems to have impressed Wall Street.

Garmin's fitness segment was particularly noteworthy, with strong demand for wearable devices driving a 31% year-over-year increase in revenue. The outdoor segment also performed well, growing 21% primarily due to adventure watches.

During the quarter, the company launched several new products, including the fēnix 8 series outdoor adventure watches and the Enduro 3 ultra-performance GPS smartwatch.