Garmin forecasts 2025 results above estimates on strong outdoor wearables demand (updated)
19/02/2025 14:34
(Updates with share after markets open)
Feb 19 (Reuters) - Swiss navigation device maker Garmin
GRMN.N forecast full-year results above Wall Street estimates
on Wednesday, banking on continued momentum in its outdoor and
auto OEM segments.
Its U.S.-listed shares were up 8.9% in early trading.
Garmin makes wearables designed for a niche market of
professionals and specializes in GPS-enabled products for
defense and recreational needs, charging a premium for its
high-end, specialized products.
Its strong and specialized business advantage has helped it
fend off competition from smartphone makers like Apple and
Samsung, which have launched wearables in the high-end market —
that Garmin currently dominates — with the launch of the Apple
Watch Ultra and Galaxy Watch Ultra wearables, respectively.
For the full-year 2025, Garmin expects revenue of
approximately $6.80 billion, above analysts' estimate of $6.72
billion, according to data compiled by LSEG.
On a pro forma basis, it expects to report a full-year
adjusted profit of $7.80 per share, beating an estimate of $7.74
per share.
Garmin's outdoor segment, its largest by revenue, saw strong
demand for its adventure watches in the holiday-season quarter,
reporting quarterly revenues of $629.4 million, trouncing an
estimate of $585.6 million.
Revenue from its auto OEM segment jumped 30% to $165.8
million, led by increased shipments of domain controllers to
automakers such as BMW.
For the quarter ended December 31, Garmin reported revenues
of $1.82 billion, above analysts' estimate of $1.7 billion,
according to data compiled by LSEG.
On a pro forma basis, its profit was $2.41 per share, while
analysts expected a profit of $2.03 per share.
(Reporting by Rishi Kant in Bengaluru; Editing by Pooja Desai)
((Rishi.Kant@thomsonreuters.com;))