Garmin Ltd. (NASDAQ: GRMN) on Wednesday reported earnings that surpassed estimates, sending its shares up nearly 9%. The Company delivered earnings of USD 1.16 per share for the second quarter. This beat the Zacks Consensus Estimate of USD 1.00 per share.
The American multinational technology company posted second quarter revenue of USD 955 Million, a 7% increase from the same quarter of the year prior. The aviation, marine, fitness, and outdoor sectors collectively grew 12% from last year. Gross margin swelled to 60.3%, compared to 58.5% in the prior year quarter.
Operating margin increased to 26.8% in the quarter, compared to 24.3% in the prior year quarter. Operating income increased by a whopping 18%, growing to USD 256 Million.
Garmin has managed to top analysts’ estimates for four consecutive quarters, an impressive feat for the Kansas-based company. Garmin has seen its stock appreciate by about 21% this year, compared to the S&P 500’s gain of 20.2%.
Garmin is a company composed of five different segments. These business segments include; aviation, marine, fitness, outdoor, and auto. The fitness sector delivered the highest net sales for the quarter at USD 251 Million, a 12% increase from the prior year quarter. The aviation segment continues to capitalize on the ADS-B opportunity with strong unit market share.
Garmin has recently announced the Force trolling motor, a powerful and efficient trolling motor that will allow fishermen to be on the water all day comfortably. Garmin was recently awarded Best of Show at ICAST, the world’s largest sportfishing trade show. The Company also recently refreshed its line of Forerunner running watches, enhancing the product with both smartwatch features and greater running dynamics.
“We achieved record second quarter revenue and profits with three of our five segments delivering strong double-digit revenue growth rates,” said Cliff Pemble, President and Chief Executive Officer of Garmin Ltd. “We are very pleased with the results we have delivered thus far, giving us the confidence to raise our full year 2019 revenue and EPS guidance.”
Garmin raised its full year guidance to anticipate revenue of approximately USD 3.6 Billion driven by higher expectations for the aviation, marine, and auto segments.