Garmin tops quarterly revenue estimates on growth in aviation, marine units
03/05/2023 13:08
May 3 (Reuters) - Smartwatch and navigation equipment
maker Garmin Ltd GRMN.N topped first-quarter revenue estimates
on Wednesday, boosted by strong growth in its businesses
catering to the aviation and marine industries.
Garmin's diversified business is helping the company
navigate a downturn in spending from recession-wary consumers,
which pushed down sales at its outdoor unit - the biggest and
home to its adventure watches - by 27%.
"2023 is off to a good start with four of our five segments
posting double-digit revenue growth, driven by new product
introductions and solid demand trends," CEO Cliff Pemble said.
Garmin launched the Forerunner 265 and Forerunner 965, its
first running watches with a bright AMOLED display, in the first
quarter to take on Apple Inc's AAPL.O Watch Ultra and Samsung
Electronics' 005930.KS Galaxy Watch 5 Pro.
The launch of the products helped its fitness business post
an 11% rise in sales, while the aviation and marine units
reported increases of 22% and 10%, respectively.
Total revenue for the quarter ended April 1 was $1.15
billion, compared with analysts' estimates of $1.08 billion,
according to Refinitiv.
Adjusted profit of $1.02 per share, however, fell short of
expectations of $1.06 as the company posted a 5% rise in total
expenses.
Garmin maintained its full-year revenue and adjusted profit
forecast.
Its shares were untraded before the bell. They have risen
5.3% so far in 2023, after declining by more than a third last
year.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by
Krishna Chandra Eluri)
((Samrhitha.A@thomsonreuters.com))