Garmin raises annual sales view, beats quarterly estimates (updated)
01/11/2023 14:21
(Adds share movement in paragraph 1)
Nov 1 (Reuters) - Navigation equipment maker Garmin
GRMN.N raised its annual sales forecast ahead of the crucial
holiday shopping period as strength in its auto and fitness
businesses drove third-quarter revenue above estimates, sending
its shares up nearly 9%.
The company has been leaning on its diverse product
portfolio that spans smartwatches, GPS devices and technology
used in vehicles to ride out weaker spending by consumers and
businesses in an uncertain economy.
Garmin's revenue rose 12% to $1.28 billion for the three
months ended Sept. 30, compared with analysts' estimates of
$1.21 billion, according to LSEG.
The company, which closed the acquisition of JL Audio in
September, said it now expects revenue of $5.15 billion and
adjusted earnings of $5.25 per share for the full year.
It had previously forecast revenue of about $5.05 billion
and adjusted earnings of $5.15 per share for the year.
"Looking ahead, we are well-positioned for the holiday
selling season with a strong lineup of innovative products which
gives us confidence to raise our outlook for the remainder of
the year," said CEO Cliff Pemble.
Sales at Garmin's auto original equipment manufacturers
segment increased by 59% to $110.2 million in the third quarter,
driven by increased shipments of domain controllers to BMW
BMWG.DE .
Its fitness business grew by 26% to $353 million, led by
strong demand for wearables.
All of Garmin's segments registered growth in the quarter,
except its marine business, which posted a 7% decrease in sales.
Excluding items, the company earned $1.41 per share, topping
expectations of $1.29.
(Reporting by Juby Babu in Bengaluru; Editing by Saumyadeb
Chakrabarty)
((Juby.Babu@thomsonreuters.com;))