Garmin raises annual sales view, beats quarterly estimates
Reuters
Published Nov 01, 2023 08:19AM ET
Updated Nov 01, 2023 10:27AM ET
(Reuters) -Navigation equipment maker Garmin (NYSE:GRMN) raised its annual sales forecast ahead of the crucial holiday shopping period as strength in its auto and fitness businesses drove third-quarter revenue above estimates, sending its shares up nearly 9%.
The company has been leaning on its diverse product portfolio that spans smartwatches, GPS devices and technology used in vehicles to ride out weaker spending by consumers and businesses in an uncertain economy.
Garmin's revenue rose 12% to $1.28 billion for the three months ended Sept. 30, compared with analysts' estimates of $1.21 billion, according to LSEG.
The company, which closed the acquisition of JL Audio in September, said it now expects revenue of $5.15 billion and adjusted earnings of $5.25 per share for the full year.
It had previously forecast revenue of about $5.05 billion and adjusted earnings of $5.15 per share for the year.
"Looking ahead, we are well-positioned for the holiday selling season with a strong lineup of innovative products which gives us confidence to raise our outlook for the remainder of the year," said CEO Cliff Pemble.
Sales at Garmin's auto original equipment manufacturers segment increased by 59% to $110.2 million in the third quarter, driven by increased shipments of domain controllers to BMW (ETR:BMWG).
Its fitness business grew by 26% to $353 million, led by strong demand for wearables.
All of Garmin's segments registered growth in the quarter, except its marine business, which posted a 7% decrease in sales.
Excluding items, the company earned $1.41 per share, topping expectations of $1.29.
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Written By: Reuters
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