Garmin's Q1 results beat on strong demand for fitness, auto products (updated)
01/05/2024 14:52
(Adds share movement in paragraph 1)
May 1 (Reuters) - Garmin GRMN.BN topped Wall Street
estimates for first-quarter results on Wednesday as the Swiss
navigation device maker benefited from new launches and strong
demand for its products in fitness and auto segments, sending
its shares up 9.6%.
Garmin, which offers GPS devices and technology used for
fitness tracking, sports, aviation and marine sectors, has
introduced upgrades on its devices and launched new products,
which have powered revenue growth.
In the first quarter, it launched Forerunner 165 series, the
latest addition to Garmin's wearable lineup of GPS running
smartwatches, fitted with personalized adaptive training plans.
It also increased efforts toward bolstering its Outdoor
segment with newly launched products such as eTrex Solar,
Garmin's first solar-charging handheld GPS, and Descent G1 Solar
Ocean Edition, a smartwatch made with recycled ocean plastics.
Garmin's first-quarter revenue surged 20% to $1.38 billion,
compared with analysts' average estimate of $1.25 billion,
according to LSEG data.
Revenue at its auto original equipment manufacturers segment
jumped 58% to $129 million, thanks to an expansion in its
customer base for domain controllers due to higher shipments to
BMW BMWG.DE .
Revenue at its fitness segment, which offers wearable like
smartwatches, surged 40% to $342.9 million.
Garmin's adjusted profit of $1.42 per share exceeded
expectations of $1.01, according to LSEG data.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Arun Koyyur)
((HarshitaMary.Varghese@thomsonreuters.com;))