Garmin forecasts strong 2024 revenue, beats quarterly estimates

NAVIGATION device maker Garmin beat fourth-quarter earnings expectations and forecast full-year revenue above estimates on Wednesday (Feb 21), betting on strong growth in its auto and fitness businesses.

Shares of the company rose about 5 per cent in trading before the bell.

New product launches, such as the vívoactive five GPS smartwatch to its line-up of GPS devices, and collaborations with popular brands have helped the Swiss company drive up demand from customers in the auto and fitness industries.

Analysts say Garmin’s diverse range of offerings that cater to industries from marine to aviation have also provided it a cushion in an uncertain economy.

Garmin expects 2024 revenue of about US$5.75 billion, above analysts’ estimates of US$5.56 billion, according to LSEG data.

The company saw a 54 per cent rise in growth compared with a year earlier to US$127.03 million from the auto original equipment manufacturers segment, bolstered by increased shipments of its domain controllers to BMW.

The company announced last month it will provide infotainment solutions to Yamaha Motor for selected models.

Its fitness segment, which offers wearables such as smartwatches and faces competition from Apple, saw a 22 per cent rise in the quarter ended Dec 30 from a year earlier to US$412.08 million.

Last week, the company’s board approved a share repurchase programme of up to US$300 million.

Garmin reported revenue of 1.48 billion for the fourth quarter, compared with analysts’ estimates of US$1.42 billion. Adjusted profit of US$1.72 per share also topped expectations. REUTERS