- Garmin reported a pro forma EPS of $2.41, surpassing the estimated $1.98 and significantly improving from last year’s $1.72.
- The company achieved a 23% increase in revenue, reaching $1.82 billion, above the anticipated $1.65 billion.
- Operating income rose 52% to $516 million, outperforming the forecast of $405.3 million.
- Fitness segment operating income soared by 72% to $159 million, exceeding expectations of $125.8 million.
- Outdoor segment saw a 53% rise in operating income, recording $251 million against an estimate of $198.6 million.
- Marine segment operating income grew by 37% to $51 million, over the predicted $42.7 million.
- Aviation operating profit increased by 13% to $64 million, surpassing the $47 million estimate.
- Garmin’s gross margin improved slightly to 59.3% compared to last year’s 58.3% and met the estimated 59.2%.
- Analyst recommendations include 1 buy, 4 holds, and 4 sells for Garmin stock.
Garmin Ltd on Smartkarma
Analysts on Smartkarma have provided diverse perspectives on Garmin Ltd. Upslope Capital Management‘s recent quarterly investor letter for Q4 2024 highlighted significant challenges, with underperforming long positions and negative impacts from shorts. The report noted a tough market environment and self-acknowledged mistakes further exacerbating the situation.
Contrastingly, Baptista Research‘s analysis offered a bullish outlook on Garmin Ltd. following a strong third-quarter performance in 2024. The company experienced substantial growth and financial success, with a notable 24% increase in consolidated revenue to $1.59 billion. Additionally, gross margin expansion to 60% and a 62% surge in operating income were highlighted as key achievements for the company during this period.
A look at Garmin Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Garmin Ltd. is positioned for a promising long-term future as indicated by its Smartkarma Smart Scores. With a strong Growth score of 4 and outstanding Resilience and Momentum scores of 5 each, the company shows potential for sustainable expansion and solid performance in the market. Additionally, garnering a score of 2 for both Value and Dividend factors, Garmin Ltd. has a balanced approach to investor returns and company valuation. As a provider of navigation, communication, and information devices leveraging GPS technology, Garmin Ltd. holds a key position in the market, offering a range of hand-held and fixed mount products under its renowned brand name.
Looking ahead, Garmin Ltd. is well-positioned to capitalize on its strong growth prospects, resilient business model, and positive market momentum. With a focus on innovation and a diversified product portfolio, the company is set to navigate through market challenges and capitalize on emerging opportunities, driving long-term value for its stakeholders. Investors can expect steady growth and performance from Garmin Ltd. based on its Smart Scores, reflecting a favorable overall outlook for the company in the foreseeable future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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