Garmin (GRMN) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Viewpoint - Garmin (GRMN) is expected to report quarterly earnings of $1.96 per share, a 24.1% increase year-over-year, with revenues projected at $1.74 billion, reflecting a 15.3% year-over-year growth [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised upward by 0.7%, indicating a reassessment by analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock [3]. Key Metrics Projections - Analysts predict 'Net Sales- Marine' to reach $296.34 million, an increase of 8.6% from the prior year [4]. - 'Net Sales- Aviation' is estimated at $242.18 million, reflecting an 11% year-over-year change [5]. - 'Net Sales- Fitness' is expected to be $513.54 million, indicating a 19.9% increase year-over-year [5]. - 'Net Sales- Outdoor' is projected at $519.45 million, suggesting an 18.1% year-over-year growth [5]. - 'Net Sales- Auto OEM' is estimated at $166.39 million, a 13.1% increase from the previous year [6]. Operating Income Estimates - 'Operating income (loss)- Outdoor' is expected to be $185.99 million, up from $135.59 million year-over-year [6]. - 'Operating income (loss)- Fitness' is projected at $140.32 million, compared to $107.61 million in the same quarter last year [7]. - 'Operating income (loss)- Marine' is estimated at $58.30 million, slightly down from $59.89 million in the previous year [7]. Gross Profit Estimates - 'Gross profit- Fitness' is forecasted to be $298.72 million, up from $245.25 million year-over-year [8]. - 'Gross profit- Marine' is expected to reach $162.48 million, compared to $147.79 million in the same quarter last year [8]. - 'Gross profit- Aviation' is projected at $181.00 million, an increase from $161.37 million year-over-year [9]. - 'Gross profit- Outdoor' is estimated at $332.14 million, up from $284.21 million in the previous year [9]. Stock Performance - Over the past month, Garmin shares have returned +13%, outperforming the Zacks S&P 500 composite's +4.6% change [9].