Garmin's (GRMN) Q2 Earnings & Revenues Surpass Estimates
Zacks Investment Research | Jul 30, 2019 10:40PM ET
Garmin Ltd. (NASDAQ:GRMN) delivered second-quarter 2019 pro-forma earnings of $1.16 per share, beating the Zacks Consensus Estimate by 16 cents. The figure improved 17.2% on a year-over-year basis and 58.9% sequentially.
Net sales came in $954.84 million, up 7% from the year-ago quarter and 24.6% from the previous quarter. Further, the figure outpaced the Zacks Consensus Estimate of $919.07 million.
Strong performance of its fitness, outdoor, marine and aviation segments drove year-over-year top-line growth.
Management is focused on continued innovation, diversification and market expansion to explore growth opportunities in all its business segments.
Segmental Revenues
Outdoor (22% of net sales): The company generated sales of $210.4 million from this segment in the second quarter, improving 4.3% year over year. The year-over-year increase was primarily driven by robust demand for Garmin’s golf wearables, Instinct adventure watch and inReach devices.
Fitness (26.3%): This segment generated sales of $251.65 million, advancing 12% from the year-ago quarter. This can primarily be attributed to its well-performing running wearables. Further, positive contributions from Tacx buyout were positives.
Marine (15.9%): Garmin generated sales of $151.41 million from this segment, increasing 13% on a year-over-year basis. The company witnessed growing demand for its chartplotters and Panoptix LiveScope sonars during the reported quarter which drove the segment’s top line.
Auto (16.5%): This segment generated sales of $157.41 million, down 12.6% from the prior-year quarter. The decline was mainly owing to shrinking of the personal navigation device (PND) market.
Aviation (19.3%): The segment generated sales of $183.96 million, surging 20.2% on a year-over-year basis. This can primarily be attributed to the well-performing aftermarket systems and ADS-B solutions. Further, the company’s solid momentum in OEM category contributed to the results.
Garmin Ltd. Price, Consensus and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.