Top Stories
Garmin’s Q1 results beat on strong demand for fitness, auto products
Global Banking & Finance Review®
Company
(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%.
(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.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur)
Revenue growth refers to the increase in a company's sales over a specific period, indicating its ability to expand its business and increase market share.
A smartwatch is a wearable device that combines the functionality of a traditional watch with advanced features like fitness tracking, notifications, and connectivity to smartphones.
A GPS device is a technology that uses satellite signals to determine the precise location of a person or object, commonly used in navigation and mapping.
Explore more articles in the Top Stories category
