Garmin, a maker of devices for outdoor recreation, fitness and navigation, on Wednesday handily beat analyst estimates for the third quarter and raised its outlook for the full year. Garmin stock rocketed on the news.
The Olathe, Kan.-based company earned an adjusted $1.99 a share on sales of $1.59 billion in the September quarter. Analysts polled by FactSet had expected earnings of $1.45 a share on sales of $1.44 billion. On a year-over-year basis, Garmin earnings rose 41% while sales increased 24%.
For the full year, Garmin now expects to earn an adjusted $6.85 a share on sales of $6.12 billion. Wall Street was modeling earnings of $6.10 a share on sales of $5.99 billion.
Its guidance implied fourth-quarter adjusted earnings of $1.86 a share on sales of $1.65 billion. Analysts were looking for Q4 earnings of $1.65 a share on sales of $1.63 billion.
Garmin's third-quarter results were fueled by a 31% increase in fitness device sales, which totaled nearly $464 million in the period.
"We are raising our 2024 outlook based on the results we have achieved so far and the momentum we are experiencing as we enter the important holiday selling season," Chief Executive Cliff Pemble said in a news release.
Garmin Stock Breaks Out
On the stock market today, Garmin stock jumped 23.3% to close at 204.92.
With the move, Garmin stock broke out of a flat base with a buy point of 184.42, according to IBD MarketSurge charts. It ended regular-session trading Tuesday at 166.27.
IBD analysis also indicated an early-entry buy point of 176.35, which included a decisive retake of Garmin's 50-day moving average. That entry could be viewed a buy point from a shallow double-bottom base.
Garmin ranks first out of 18 stocks in IBD's consumer electronics industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 78 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
