Core Viewpoint - Garmin (GRMN) shows a promising earnings outlook, with analysts raising earnings estimates, which is likely to positively impact the stock price [1][2]. Earnings Estimate Revisions - Current-quarter earnings are projected at $1.79 per share, reflecting a year-over-year increase of +4.07% [4]. - Over the last 30 days, the Zacks Consensus Estimate for Garmin has risen by 13.26%, with two estimates moving higher and no negative revisions [4]. - For the full year, earnings are expected to be $6.47 per share, indicating a +15.74% change from the previous year [5]. - The consensus estimate for the current year has increased by 13.97%, supported by two upward revisions and no negative changes [5]. Zacks Rank and Performance - Garmin currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts on the positive earnings revisions [6]. - Stocks with a Zacks Rank 1 have historically outperformed, with an average annual return of +25% since 2008 [3][6]. - The stock has appreciated by 24.1% over the past four weeks due to strong estimate revisions, suggesting potential for further upside [7].

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Technical Analysis - Garmin (GRMN) has reached an important support level and surpassed resistance at the 50-day moving average, indicating a potential short-term bullish trend [1] - The 50-day simple moving average is a key technical indicator for determining support or resistance levels, serving as an early sign of market trends [1] Stock Performance - Over the past four weeks, GRMN shares have increased by 19.1%, suggesting positive momentum [2] - The company currently holds a Zacks Rank 3 (Hold), indicating potential for continued stock price appreciation [2] Earnings Estimates - Positive earnings estimate revisions support a bullish outlook for GRMN, with no estimates decreasing in the past two months and two estimates increasing [2] - The consensus earnings estimate for the current fiscal year has also risen, reinforcing the positive sentiment around the stock [2] Future Outlook - Investors are encouraged to monitor GRMN for potential gains in the near future, given its key technical levels and favorable earnings revisions [3]

Garmin Ltd. (GRMN) reported third-quarter 2024 pro forma earnings of $1.99 per share, beating the Zacks Consensus Estimate by 36.3%. The bottom line improved 41% on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net sales were $1.58 billion, which surpassed the Zacks Consensus Estimate of $1.44 billion. The figure increased 24.1% from the year-ago quarter.Year-over-year growth in the top line was attributed to the solid momentum across Outdoor, Fitness, Aviatio ...

Garmin is growing incredibly quickly in the watch market.Investors have long overlooked Garmin's (GRMN 23.25%) growth potential, but the company has held off competitors and is now growing as it raises prices on high-end products. Travis Hoium digs into the numbers in this video.*Stock prices used were end-of-day prices of Oct. 30, 2024. The video was published on Oct. 30, 2024. ...

Financial Data and Key Metrics Changes - Consolidated revenue increased 24% to $1.59 billion, setting a new third-quarter record, with record revenue achieved in all five business segments [5][29] - Gross margin expanded 300 basis points to 60%, while operating income increased 62% year-over-year [6][29] - Pro forma EPS rose 41% year-over-year to $1.99 [6][30] Business Segment Performance - **Fitness Segment**: Revenue increased 31% to $464 million, with gross margin at 61%, a 710 basis point improvement [12] - **Outdoor Segment**: Revenue increased 21% to $527 million, with gross margin at 68%, a 570 basis point improvement [15] - **Aviation Segment**: Revenue increased 3% to $205 million, with gross margin at 75% and operating income of $44 million, a decrease of 10% year-over-year [18][21] - **Marine Segment**: Revenue increased 22% to $222 million, with gross margin at 55%, a 290 basis point improvement [22][23] - **Auto OEM Segment**: Revenue increased $53 million to $169 million, with gross margin at 20% and operating loss narrowed to $1 million [27] Market Data and Key Metrics Changes - Garmin's global market share in advanced wearables increased over 200 basis points year-over-year, making it the number two brand in Europe and number three globally [9][10] - EMEA region led growth with 40%, followed by APAC with 18% and Americas with 15% [32] Company Strategy and Industry Competition - Garmin's strategy focuses on product differentiation and premium pricing to maintain margins, with a strong emphasis on unique product features [46] - The company is expanding its product portfolio through acquisitions, such as Lumishore, to enhance its marine segment [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fourth quarter due to strong retail partnerships and clean inventory levels [42][56] - The company updated its full-year 2024 guidance, anticipating revenue of approximately $6.12 billion and pro forma EPS of $6.85 [11][37] Other Important Information - The company celebrated the tenth anniversary of Garmin Health and hosted the annual Garmin Health Summit [13] - The effective tax rate increased to 17.9% due to changes in the Switzerland tax rate [36] Q&A Session Summary Question: Drivers within wearables and growth of installed base - Management noted that the majority of new users are new to Garmin, indicating strong growth potential [40] Question: Insights on gross margins related to lower product costs - Management highlighted benefits from material costs and operational efficiencies as key factors [41] Question: Retailer commitments to inventory levels for the holidays - Retailers are eager to stock Garmin products, indicating a positive outlook for the holiday season [42] Question: Sustainability of high margins in Fitness and Outdoor segments - Management emphasized the importance of product differentiation and cost management for sustaining margins [46] Question: Impact of auto OEM market weakness on future targets - Management stated it is too early to comment on changes to the $800 million target for auto OEM in 2025 [48] Question: Uptake of paid apps on the Connect IQ platform - Management views paid apps as incremental revenue enhancers, with early positive responses [50] Question: Impact of Textron strike on aviation segment - Management indicated no long-term effects anticipated from the strike [55] Question: Inventory management and sell-through dynamics - Management clarified that inventory increases are to prepare for higher sales in Q4, with strong sell-out rates observed [62]

Earnings and Guidance - Garmin reported a standout quarterly performance, leading to a 23.7% surge in stock price as of 11:40 a.m. ET [1][2] - The company revised its 2024 revenue growth guidance from 10% to over 17% year-over-year [1][2] - Garmin's stock has risen by 60% year-to-date following the strong quarterly results [2] Segment Performance - Garmin achieved year-over-year revenue growth across all five segments in Q3 [3] - Fitness: 31% growth [3] - Outdoor: 21% growth [3] - Aviation: 3% growth [3] - Marine: 22% growth [3] - New product launches, such as the Fenix 8 and Enduro 3, contributed to the strong performance in the outdoor segment [3] Profitability and Cash Flow - Garmin raised its full-year gross margin expectations by 150 basis points to 58.5% [3] - The company expects operating profit to reach 24% in 2024, up from 21.1% in the previous year [3] - Garmin ended the quarter with $3.5 billion in cash and marketable securities, providing ample liquidity for dividend payments and other uses [4] Valuation and Investment Outlook - Despite the stock surge, Garmin shares are still trading at a price-to-earnings ratio (P/E) below 30 for the year [5] - Continued earnings growth in 2025 could drive further stock price appreciation [5]

Garmin (GRMN) reported $1.59 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 24.2%. EPS of $1.99 for the same period compares to $1.41 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.44 billion, representing a surprise of +9.81%. The company delivered an EPS surprise of +36.30%, with the consensus EPS estimate being $1.46.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and onl ...

Revenue and Profit Growth - Consolidated revenue for Q3 2024 reached $1.59 billion, a 24% increase YoY, with gross and operating margins expanding to 60.0% and 27.6%, respectively[1] - Operating income for Q3 2024 was $437 million, a 62% increase YoY, driven by strong performance across segments[1] - Net sales for the 13-weeks ended September 28, 2024, increased to $1,586,022 thousand, up 24.1% from $1,277,531 thousand in the same period last year[15] - Gross profit for the 13-weeks ended September 28, 2024, rose to $951,599 thousand, a 30.6% increase from $728,569 thousand in the prior year period[15] - Net income for the 13-weeks ended September 28, 2024, grew to $399,111 thousand, up 55.2% from $257,243 thousand in the same period last year[15] - Net sales for the 13-weeks ended September 28, 2024, totaled $1,586,022 thousand, a 24% YoY increase from $1,277,531 thousand in the same period in 2023[19] - Gross profit for the 13-weeks ended September 28, 2024, was $951,599 thousand, up from $728,569 thousand in the same period in 2023[18] - Operating income for the 13-weeks ended September 28, 2024, reached $437,475 thousand, compared to $270,369 thousand in the same period in 2023[18] - GAAP net income for the 13-weeks ended September 28, 2024, was $399,111 thousand, compared to $257,243 thousand in the same period in 2023[25] - Net sales for the 39-weeks ended September 28, 2024, totaled $4,474,342 thousand, a 19% YoY increase from $3,745,751 thousand in the same period in 2023[19] - Operating income for the 39-weeks ended September 28, 2024, was $1,077,913 thousand, compared to $751,706 thousand in the same period in 2023[18] Segment Performance - Fitness segment revenue grew 31% YoY to $463.9 million, with gross and operating margins of 61% and 32%, respectively[4] - Outdoor segment revenue increased 21% YoY to $526.6 million, driven by growth in adventure watches, with gross and operating margins of 68% and 40%, respectively[5] - Marine segment revenue rose 22% YoY to $222.2 million, primarily due to the acquisition of JL Audio, with gross and operating margins of 55% and 17%, respectively[7] - Auto OEM segment revenue surged 53% YoY to $168.7 million, driven by growth in domain controllers, with a gross margin of 20%[8] Financial Guidance and Cash Flow - Garmin raised its full-year 2024 revenue guidance to $6.12 billion, with pro forma EPS expected to be $6.85, based on a gross margin of 58.5% and operating margin of 24.0%[11] - The company generated $258 million in operating cash flow and $219 million in free cash flow during Q3 2024, ending the quarter with $3.5 billion in cash and marketable securities[10] - Cash and cash equivalents as of September 28, 2024, stood at $2,009,361 thousand, an 18.6% increase from $1,693,452 thousand at the end of 2023[16] - Total assets as of September 28, 2024, increased to $9,347,732 thousand, up 8.6% from $8,603,569 thousand at the end of 2023[16] - Net cash provided by operating activities for the 39-weeks ended September 28, 2024, was $948,581 thousand, a 4.2% increase from $910,324 thousand in the same period last year[17] - Free cash flow for the 13-weeks ended September 28, 2024, was $219,411 thousand, down from $311,882 thousand in the same period in 2023[28] Strategic Initiatives and Product Launches - Garmin announced the strategic acquisition of Lumishore, a leader in marine LED lighting, to enhance its marine product offerings[1] - The company launched the fēnix 8 series and Enduro 3, expanding its outdoor adventure watch lineup, and introduced the inReach Messenger Plus, a satellite communicator with advanced features[5] Regional Sales Performance - Net sales in the Americas region for the 13-weeks ended September 28, 2024, were $724,572 thousand, a 15% YoY increase from $628,157 thousand in 2023[19] - EMEA region net sales for the 13-weeks ended September 28, 2024, were $612,658 thousand, a 40% YoY increase from $439,123 thousand in 2023[19] Expenses and Dividends - Research and development expenses for the 13-weeks ended September 28, 2024, increased to $249,162 thousand, up 12.5% from $221,572 thousand in the same period last year[15] - Total operating expenses for the 13-weeks ended September 28, 2024, rose to $514,124 thousand, a 12.2% increase from $458,200 thousand in the prior year period[15] - Dividends paid during the 39-weeks ended September 28, 2024, totaled $428,373 thousand, a 2.2% increase from $419,166 thousand in the prior year period[17] - Net cash used in investing activities for the 39-weeks ended September 28, 2024, was $190,765 thousand, a 28.7% decrease from $267,692 thousand in the same period last year[17] Tax and Other Financial Metrics - The effective tax rate for the 13-weeks ended September 28, 2024, was 17.9%, compared to 8.0% in the same period in 2023[22]