Garmin’s latest quarterly earnings show its still king of the GPS market

Garmin reported Q2 results, with revenues and earnings both coming in above Wall Street expectations.

Essential reading: Top fitness trackers and health gadgets

For the three months ending in June, Garmin reported $894 million worth of revenue, up 8% on the same period last year. This was above the $852.2 expected by markets and represents the fourth consecutive quarter the company has topped revenue estimates. Earnings of 99 cents per share beat the consensus mark by 12 cents.

Here is a breakdown of the figures.

Progress was seen almost across the board. Sales of fitness, marine and aviation products all saw an increases of around a quarter on last year. The only under-performer was Garmin’s automotive segment, once its bread and butter business, which experienced a 19% drop in sales.

“We are pleased with our performance in the first half of 2018, and these strong results give us confidence to raise our full-year guidance.” said Garmin CEO Cliff Pemble at the earnings call.

“…Looking forward, we believe, we are well-positioned in the segment, with a strong line-up of wearables and cycling products.”

America accounted for the bulk of revenue generating some 49% (8.9% year over year) of the total. EMEA and APAC contributed 35% (down 1.8%) and 16% (up 28.4%), respectively.

In line with general market trends, Garmin’s basic activity tracker category continued its decline. However this was more than offset by growth in other categories, primarily sports-watches. We saw the launch of Vivoactive 3 Music and Fenix 5 Plus in recent months which, no doubt, contributed to strong revenue.

The company has carved out a niche for itself and is quite rightly making sure it stays the king of the GPS market. This is, after all, the strategy which got it to where it is today.

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