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Valued at a market cap of $36.4 billion, Garmin Ltd. (GRMN) designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Based in Schaffhausen, Switzerland, the company operates through five segments: fitness, outdoor, aviation, marine, and auto.
The company is expected to release its Q1 2025 earnings before the market opens on Wednesday, Apr. 30. Ahead of this event, analysts expect Garmin to post adjusted earnings of $1.62 per share, reflecting a growth of 14.1% from $1.42 per share reported in the same quarter last year. In addition, the company has surpassed Wall Street's bottom-line estimates in the past four quarters.
Meanwhile, for fiscal 2025, analysts expect GRMN to report an adjusted EPS of $7.86, marking an increase of 6.4% from $7.39 in fiscal 2024. Moreover, its earnings are expected to further grow 7.1% year-over-year to $8.42 per share in fiscal 2026.
Shares of GRMN have soared 32.9% over the past 52 weeks, notably outpacing the S&P 500 Index's ($SPX) 4.4% gain and the Technology Select Sector SPDR Fund’s (XLK) 3.9% decline during the same time frame.
Shares of GRMN climbed 12.6% following the release of its solid Q4 2024 results on Feb. 19. The company reported revenue of $1.8 billion, up 23% year-over-year, exceeding analyst estimates. Driven by increased shipments of domain controllers, revenue from the Auto Rem segment surged 30% year-over-year to $165.7 million, while the Fitness segment saw a 31% year-over-year rise to $539.3 million in Q4 revenue, with strong demand for wearables leading growth across all categories. The adjusted EPS came in at $2.41, surpassing Wall Street expectations and marking a 24.2% increase over the estimate.
Looking ahead to fiscal 2025, Garmin expects revenue to be $6.8 billion with a gross margin of 58.7%, and its adjusted EPS to be $7.80.
Furthermore, analysts' consensus view on Garmin is cautious, with a "Hold" rating overall. Among six analysts covering the stock, one suggests a "Strong Buy," two give a "Hold," one recommends a "Moderate Sell,” and two give a “Strong Sell” rating. Its mean price target of $213.40 represents a 12.9% premium to current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
