Garmin's Q1 results beat on strong demand for fitness, auto products
Reuters
Published May 01, 2024 13:16
Updated May 01, 2024 15:17
(Reuters) -Garmin topped Wall Street estimates for first-quarter results on Wednesday as the Swiss navigation device maker benefited from new launches and strong demand for its products in fitness and auto segments, sending its shares up 9.6%.
Garmin, which offers GPS devices and technology used for fitness tracking, sports, aviation and marine sectors, has introduced upgrades on its devices and launched new products, which have powered revenue growth.
In the first quarter, it launched Forerunner 165 series, the latest addition to Garmin's wearable lineup of GPS running smartwatches, fitted with personalized adaptive training plans.
It also increased efforts toward bolstering its Outdoor segment with newly launched products such as eTrex Solar, Garmin's first solar-charging handheld GPS, and Descent G1 Solar Ocean Edition, a smartwatch made with recycled ocean plastics.
Garmin's first-quarter revenue surged 20% to $1.38 billion, compared with analysts' average estimate of $1.25 billion, according to LSEG data.
Revenue at its auto original equipment manufacturers segment jumped 58% to $129 million, thanks to an expansion in its customer base for domain controllers due to higher shipments to BMW.
Revenue at its fitness segment, which offers wearable like smartwatches, surged 40% to $342.9 million. Garmin's adjusted profit of $1.42 per share exceeded expectations of $1.01, according to LSEG data.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.