Garmin beats quarterly estimates on growth in fitness and auto businesses
02/08/2023 13:12
Aug 2 (Reuters) - Navigation equipment maker Garmin
GRMN.N beat market estimates for second-quarter revenue and
profit on Wednesday, thanks to strong growth in its auto and
fitness businesses.
The company has been leaning on its diversified presence
that spans smartwatches, GPS devices and technology used in
vehicles to help ride out weaker spending by consumers and
corporates in an uncertain economy.
Garmin's revenue grew 6% to $1.32 billion in the quarter
ended July 1, compared with analysts' average estimate of $1.26
billion, according to Refinitiv. Garmin increased its full-year
revenue forecast to $5.05 billion from $5 billion earlier.
"Our recent wearable launches have been well received and we
expect continued revenue growth throughout the remainder of the
year," said CEO Cliff Pemble.
The wearable device maker which faces stiff competition from
Apple's AAPL.O smartwatches, launched the Edge 540 and Edge
840 GPS-based cycling computers during the reported quarter with
enhanced battery life, solar charging options and mapping
upgrades.
Sales at its auto original equipment manufacturers jumped
77%, while sales at its fitness unit increased 23%.
The company's marine and outdoor businesses were a drag with
sales falling 11% and 3%, respectively.
Excluding items, Garmin earned $1.45 per share, above
estimates of $1.41 per share.
The company's shares have risen 15.2% so far in 2023, after
declining by nearly a third last year.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by
Shailesh Kuber)
((Samrhitha.A@thomsonreuters.com))