The manufacturer of navigation devices, Garmin (GRMN.BN), opened a new tab, exceeded profit projections for the fourth quarter, and increased its full-year sales prediction on Wednesday, placing a significant bet on the future of its fitness and automotive businesses.
Prior to the bell, the company’s shares increased by almost 5% in trade. The Swiss firm has been able to increase demand from consumers in the car and fitness industries through partnerships with well-known brands and the introduction of new products like the vívoactive 5 GPS wristwatch to its lineup of GPS devices.
Analysts claim that Garmin has a buffer in an unpredictable economy because to its broad variety of products, which serve everything from the marine to the aviation industries.
Based on LSEG data, Garmin projects sales of around $5.75 billion in 2024, which is higher than analysts’ projections of $5.56 billion.
The company’s car original equipment manufacturers division showed a 54% increase in growth from the previous year to $127.03 million, supported by higher sales of its domain controllers to BMW (BMWG.DE), opens new tab.
The business said last month that it will offer infotainment solutions to Yamaha Motor Co. (7272.T), opening a new tab specifically for certain vehicles.
Its fitness division, which sells wearables like smartwatches and competes with Apple (AAPL.O), opens new tab, reported a 22% increase in revenue to $412.08 million in the quarter that ended on December 30 compared to the same period last year.
The board of the business authorized a $300 million share repurchase program last week. Analysts had predicted that Garmin would make $1.42 billion in revenue for the fourth quarter, but the company instead recorded 1.48 billion. $1.72 in adjusted earnings per share above forecasts as well.
