Outdoor recreation, fitness and navigation device maker Garmin on Wednesday crushed Wall Street's targets for the first quarter. Garmin stock jumped on the news.
The Olathe, Kan.-based company earned an adjusted $1.42 a share on sales of $1.38 billion in the March quarter. Analysts polled by FactSet had expected earnings of $1.01 a share on sales of $1.25 billion. On a year-over-year basis, Garmin earnings jumped 39% while sales increased 20%.
Garmin reiterated its 2024 guidance for adjusted earnings of $5.40 a share on sales of $5.75 billion. However, analysts have forecast earnings of $5.44 a share on sales of $5.73 billion.
"We delivered outstanding performance in the first quarter with double-digit percentage growth in revenue and operating income," Chief Executive Cliff Pemble said in a news release. "We attribute these noteworthy results to our strong product portfolio and the robust demand trends that we have been experiencing."
Garmin Stock Rises After Report
On the stock market today, Garmin stock jumped 13.1% to close at 163.42. In intraday trading, it notched a two-year high of 164.73.
Of the company's major product categories, fitness was the top performer, with sales rising 40% to nearly $343 million in the March quarter. Garmin noted strong demand for advanced wearables, including its new Forerunner 165 Series smartwatch for runners and other athletes.
On Feb. 21, Garmin stock broke out of a flat base at a buy point of 129.32, according to IBD MarketSurge charts.
Ahead of the quarterly report, Garmin shares had pulled back to the 10-week line and were close to forging a new flat base.
Garmin stock is on two IBD lists: Global Leaders and Tech Leaders.
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