Garmin (GRMN) Q3 Earnings & Revenues Beat Expectations
Zacks Investment Research | Oct 25, 2016 11:20PM ET
Garmin Ltd. (NASDAQ:GRMN) reported better-than-expected third-quarter 2016 results with revenues and earnings surpassing the Zacks Consensus Estimate. Earnings of 75 cents per share surpassed the consensus mark by 41.5% while revenues of $722.3 million beat the same by 6.5%.
At the time of this writing, Garmin shares appreciated 5.84%.
Revenues
Garmin’s third-quarter revenues of $722.3 million were down 11% sequentially but up 6.3% year over year. Year over year, revenues were helped by higher demand across marine, outdoor, fitness and aviation segments.
Revenues by Segment
Garmin’s Auto/Mobile, Fitness, Outdoor, Aviation and Marine segments generated 30%, 26%, 19%, 15%, and 10% of quarterly revenues, respectively.
Seasonality results in considerable variations in Garmin’s quarterly revenues.
The Fitness segment decreased 11.1% sequentially but increased 32.1% year over year. The year-over-year growth was mainly attributable to sales of wrist heart rate wearable devices and cycling.
Aviation segment revenues were down 0.8% sequentially but up 14% year over year. The increase was mainly driven by higher sales of Original Equipment Manufacturer (OEM) products and Automatic Dependent Surveillance Broadcast (ADS-B) systems.
Outdoor revenues were up 5.9% sequentially and 22.3% year over year, driven mainly by strength in wearable devices.
The Marine segment decreased a massive 37.3% sequentially but increased 12.3% year over year. The year-over-year growth was driven by strength in chartplotter, fish finder and entertainment product lines.
The Auto/Mobile segment was down 12.7% sequentially and 18.9% on a year-over-year basis. The year-over-year decrease was due to the shrinking of the personal navigation device (PND) market and headwinds caused by additional revenue deferrals.
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