Garmin forecasts strong 2024 revenue, beats quarterly estimates
21/02/2024 13:54
Feb 21 (Reuters) - Navigation device maker Garmin
GRMN.BN GRMN.K beat fourth-quarter earnings expectations and
forecast full-year revenue above estimates on Wednesday, betting
on strong growth in its auto and fitness businesses.
Shares of the company rose about 5% in trading before the
bell.
New product launches, such as the vívoactive 5 GPS
smartwatch to its line-up of GPS devices, and collaborations
with popular brands have helped the Swiss company drive up
demand from customers in the auto and fitness industries.
Analysts say Garmin's diverse range of offerings that cater
to industries from marine to aviation have also provided it a
cushion in an uncertain economy.
Garmin expects 2024 revenue of about $5.75 billion, above
analysts' estimates of $5.56 billion, according to LSEG data.
The company saw a 54% rise in growth compared with a year
earlier to $127.03 million from the auto original equipment
manufacturers segment, bolstered by increased shipments of its
domain controllers to BMW BMWG.DE .
The company announced last month it will provide
infotainment solutions to Yamaha Motor Co 7272.T for selected
models.
Its fitness segment, which offers wearables such as
smartwatches and faces competition from Apple AAPL.O , saw a
22% rise in the quarter ended Dec. 30 from a year earlier to
$412.08 million.
Last week, the company's board approved a share repurchase
program of up to $300 million.
Garmin reported revenue of 1.48 billion for the fourth
quarter, compared with analysts' estimates of $1.42 billion.
Adjusted profit of $1.72 per share also topped expectations.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Krishna Chandra Eluri)
((HarshitaMary.Varghese@thomsonreuters.com;))