Garmin, a maker of devices for outdoor recreation, fitness and navigation, on Wednesday smashed expectations for the fourth quarter. It also guided above views for the year ahead. Garmin stock surged to a record high on the news.
The Olathe, Kan.-based company earned an adjusted $2.41 a share on sales of $1.82 billion in the December quarter. Analysts polled by FactSet had expected earnings of $2.05 a share on sales of $1.7 billion. On a year-over-year basis, Garmin earnings jumped 40% while sales increased 23%.
For 2025, Garmin forecast adjusted earnings of $7.80 a share, up 5.5%, on revenue of $6.8 billion, up 8%. Wall Street was modeling earnings of $7.77 a share on sales of $6.73 billion. Last year, Garmin's earnings per share increased 32% with revenue up 20%.
"We are entering 2025 with continued strong momentum from our robust product lineup and have many product launches planned during the year," Chief Executive Cliff Pemble said in a news release.
All of Garmin's product categories grew in the fourth quarter. It saw big increases in sales of fitness devices, up 31% year over year, and outdoor gadgets, up 29%. Top-selling products included fitness smartwatches and adventure watches.
Garmin Stock Is On Tech Leaders List
In other news, Garmin plans to increase its quarterly dividend by 20% to 90 cents a share from 75 cents.
On the stock market today, Garmin stock jumped 12.6% to close at 241.93. Earlier in the session, it notched an all-time high of 246.35.
Garmin stock hit its previous record high of 223.33 on Feb. 7 as it attempted a breakout from a cup-with-handle base, according to IBD MarketSurge charts. But the stock reversed and triggered an IBD sell rule as it fell below its 50-day moving average line.
Garmin stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
