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Valued at $32.7 billion by market cap and headquartered in Switzerland, Garmin Ltd. (GRMN) is a leading manufacturer of GPS-based navigation and communication equipment. The company operates in five segments: Outdoor, Fitness, Marine, Auto, and Aviation. Garmin is set to announce its Q2 earnings for fiscal 2024 on Wednesday, Jul. 31.
Ahead of the event, analysts expect Garmin to report a profit of $1.45 per share, flat from the year-ago quarter figure. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters.
Garmin's strong product portfolio and the robust demand trends helped its EPS for the last quarter to rise 39% year over year to $1.42, surpassing the consensus estimate by 42%.
Looking ahead, analysts expect Garmin to report an EPS of $5.77 in fiscal 2024, up 3.2% from $5.59 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 12.7% year over year to $6.50.
GRMN stock has rallied 57.9% over the past 52 weeks, considerably outperforming the broader S&P 500 Index's ($SPX) 20.6% gains and the Technology Select Sector SPDR Fund’s (XLK) 22.8% returns over the same time frame.
Garmin, primarily renowned for its GPS technology in fitness, sports, aviation, and marine sectors, has boosted revenue with device upgrades and new product launches like the eTrex Solar, its first solar-charging handheld GPS, and the Descent G1 Solar Ocean Edition, a smartwatch made from recycled ocean plastics.
The company’s stock climbed up 13.1% following the release of its Q1 earnings report on May 1. It surpassed analysts’ EPS and revenue estimates and also updated its 2024 revenue guidance of approximately $5.8 billion.
However, the current consensus view on Garmin stock is “Hold” overall. Among the six analysts covering the stock, one recommends a "Strong Buy,” four suggest a “Hold,” and the remaining analyst advises a "Moderate Sell."
While the stock is currently trading above its average price target of $169, the Street high price target for Garmin is $210, indicating a potential upside of 23.5% from the current price levels.
On the date of publication, Kritika Sarmah 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.
