Garmin Reports Strong Q2 Results, Raises Full-Year Guidance
Shares of Garmin (NYSE: GRMN) rose on Wednesday after the company reported better-than-expected financial results for its fiscal second quarter and raised its full-year outlook. Revenue increased by 11% year-over-year to $2 billion, driven primarily by strong performance in marine sales (+14%) and fitness revenue (+25%). New product launches such as Garmin Signal VHF radios and Forerunner smartwatches contributed significantly to the growth. Garmin also saw a significant improvement in profit margins. Its gross margin rose 3.6 percentage points to 62.4%, leading to an operating income increase of 30% year-over-year, reaching $616 million. Adjusted earnings per share came in at $2.81, surpassing Wall Street's expectations of $2.29. Encouraged by these results and ongoing sales trends, Garmin raised its full-year revenue forecast to $8.05 billion from a previous estimate of $7.9 billion. The company also increased its adjusted earnings per share guidance to $10.
Topics: fitness GPS_devices profit_growth wearables