Garmin raises annual forecast on strong demand for advanced wearables
Garmin raises annual forecast on strong demand for advanced wearables Garmin GRMN.N raised its full-year revenue and adjusted profit forecasts on Wednesday, betting on strong demand for its advanced fitness wearables and growth in its marine businesses.
Shares of the company jumped 7.2% in premarket trading.
Garmin, which develops GPS-enabled products, has strengthened its position in advanced fitness wearables despite competition from Apple and Samsung.
The company posted second-quarter revenue of $2.02 billion. Analysts on average expected $1.90 billion, according to data compiled by LSEG.
In April, it forecast its fitness business to be the biggest contributor to growth this year, driven by demand for advanced wearables.
Revenue in the segment leaped 25%, while Marine segment sales increased 14%.
Consolidated gross margin expanded 360 basis points to 62.4% in the quarter, driven by a favorable product mix and about $21 million in refunds of previously paid tariffs.
Adjusted diluted earnings per share came in at $2.81 for the second quarter, beating estimates of $2.24.
The company now expects full-year adjusted profit of $10 per share and revenue of about $8.05 billion, up from its prior forecast of $9.35 per share and $7.9 billion, respectively.
(Reporting by Anzar Mehraj in Bengaluru; Editing by Joyjeet Das)
((Anzar.Mehraj@thomsonreuters.com;))