Garmin’s Q4 earnings report crushed analysts expectations and sent the company’s stock surging in today’s trading.
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The outfit earned an adjusted $1.02 per share on sales of $932 million in the all important December quarter. Wall Street expected Garmin earnings of 80 cents per share on sales of $891 million.
The company’s full year revenue increased by 7% to 3.35 billion. The star performer was the aviation, marine, outdoor and fitness segment which increased by 16%. Last year saw the launch of a number of new wearables by the Kansas-based outfit. This includes an adventure watch called Instinct, dive computer Descent and a range of music compatible smartwatches.
“2018 was another remarkable year of revenue and operating income growth driven by strong performance in our aviation, marine, outdoor and fitness segments,” said Chief Executive Cliff Pemble.
“Entering 2019, we see many opportunities ahead and believe that we are well positioned to seize these opportunities with a strong lineup of products across all of our segments.”
The company expects to earn $3.70 per share this year on sales of $3.5 billion. Wall Street had forecast earnings of $3.52 per share on sales of $3.43 billion.
Garmin recently signed an agreement to acquire Tacx as part of a bid to expand its presence in the indoor cycling market. The deal will see them gain a high-quality line of indoor fitness training equipment and software that it can promote through its wide distribution network. We are also expecting new smartwatches from the outfit in 2019 including the Forerunner 945, Vívoactive 4 and more.
The company’s stock shot up on the news and is currently trading up 16% since this morning at 82.28. Not an all-time high but the highest its shares have been trading in more than a decade.
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