Garmin's (GRMN) Q3 Earnings & Revenues Surpass Estimates
Zacks Investment Research | Oct 29, 2019 11:40PM ET
Garmin Ltd. (NASDAQ:GRMN) reported third-quarter 2019 pro-forma earnings of $1.27 per share, beating the Zacks Consensus Estimate of 94 cents. Moreover, the figure improved 27% on a year-over-year basis and 9.5% sequentially.
Net sales came in $934.38 million, up 15% from the year-ago quarter but down 2.1% from the third quarter. The top line outpaced the Zacks Consensus Estimate of $863.92 million.
Strong performance of its fitness, outdoor, marine and aviation segments drove the 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 (28% of net sales): The segment generated third-quarter sales of $258.3 million, improving 23% year over year. The year-over-year increase was primarily driven by robust demand for Garmin’s adventure watches.
Fitness (26%): This segment generated sales of $243.1 million, which increased 28% from the year-ago quarter. This can be primarily attributed to its well-performing running wearables. Further, positive contributions from the Tacx buyout were positives.
Aviation (20%): The segment generated sales of $187.6 million, improving 28% on a year-over-year basis. This can be primarily attributed to the well-performing OEM and aftermarket systems. Further, the company’s solid momentum in the OEM category contributed to the impressive results.
Marine (12%): Garmin generated sales of $107.7 million from this segment, increasing 9% on a year-over-year basis. The company witnessed growing demand for chartplotters during the reported quarter ,in turn driving the segment’s topline.
Auto (14%): This segment generated sales of $137.7 million, down 17% from the prior-year quarter. The decline was mainly due to shrinking of the personal navigation device market.
Garmin Ltd. Price, Consensus and EPS Surprise
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