Garmin forecasts strong 2024 revenue, beats quarterly estimates
Reuters
Published Feb 21, 2024 09:01AM ET
Updated Feb 21, 2024 10:32AM ET
(Reuters) -Navigation device maker Garmin (NYSE:GRMN) beat fourth-quarter earnings expectations and forecast full-year revenue above estimates on Wednesday, betting on strong growth in its auto and fitness businesses.
Shares of the company rose 9.7% to $134.67.
New product launches, such as the vívoactive 5 GPS smartwatch, and collaborations with popular brands have helped the Swiss company drum up demand for its smartwatches and navigation systems used in vehicles.
Analysts said Garmin's diverse range of offerings that cater to industries from marine to aviation have also cushioned results in an uncertain economy.
Garmin expects 2024 revenue of about $5.75 billion, above analysts' estimates of $5.56 billion, according to LSEG data.
The company's auto original equipment manufacturers segment recorded a 54% year-over-year rise in revenue to $127.03 million, bolstered by increased shipments of its domain controllers to BMW (ETR:BMWG).
Garmin announced last month it will provide infotainment solutions to Yamaha Motor Co for selected models.
Its fitness segment, which offers wearables such as smartwatches and faces competition from Apple (NASDAQ:AAPL), saw a 22% rise for the quarter ended Dec. 30 to $412.08 million.
Last week, the company's board approved a share repurchase program of up to $300 million.
Garmin reported revenue of $1.48 billion for the fourth quarter, compared with analysts' estimates of $1.42 billion. Adjusted profit of $1.72 per share also beat expectations.
Get The News You Want
Written By: Reuters
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.