NEW YORK - Garmin Ltd . (NYSE:GRMN) shares surged 11% on Wednesday after the company reported third-quarter earnings that significantly exceeded analyst expectations and raised its full-year guidance.
The GPS technology firm posted adjusted earnings per share of $1.99 for the third quarter, surpassing the analyst consensus of $1.44 by $0.55. Revenue came in at $1.59 billion, beating estimates of $1.44 billion and marking a 24% increase YoY.
Garmin's strong performance was driven by growth across all its business segments, with fitness revenue up 31% and outdoor revenue rising 21% YoY. The company's gross margin expanded to 60.0%, while operating margin improved to 27.6%.
"We delivered another quarter of impressive financial results as our highly differentiated and innovative products resonate with customers," said Cliff Pemble, President and CEO of Garmin.
Looking ahead, Garmin raised its full-year 2024 outlook. The company now expects revenue of approximately $6.12 billion, up from its previous forecast and above the analyst consensus of $5.988 billion. Garmin also increased its adjusted EPS guidance to $6.85, well above the $6.08 analysts were expecting.
The positive results and outlook prompted investors to bid up Garmin shares by 11% in early trading. The company's ability to grow sales and expand margins in the current economic environment appears to have impressed Wall Street.
Garmin's fitness segment was a particular bright spot, with revenue increasing 31% YoY led by strong demand for wearables. The outdoor segment also performed well, growing 21% primarily due to adventure watches.
The company launched several new products during the quarter, including the fēnix 8 series of outdoor adventure watches and the Enduro 3 ultraperformance GPS smartwatch.
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