Garmin forecasts strong 2024 revenue, beats quarterly estimates (updated)
21/02/2024 15:25
(Updates share movement in paragraph 2)
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 9.7% to $134.67.
New product launches, such as the vívoactive 5 GPS
smartwatch, and collaborations with popular brands have helped
the Swiss company drum up demand for its smartwatches and
navigation systems used in vehicles.
Analysts said Garmin's diverse range of offerings that cater
to industries from marine to aviation have also cushioned
results 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's auto original equipment manufacturers segment
recorded a 54% year-over-year rise in revenue to $127.03
million, bolstered by increased shipments of its domain
controllers to BMW BMWG.DE .
Garmin 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 for the quarter ended Dec. 30 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 beat expectations.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Krishna Chandra Eluri and Devika Syamnath)
((HarshitaMary.Varghese@thomsonreuters.com;))