Here’s Why Garmin Shares Are Up Today Despite Declines for Fitness Trackers
Garmin reported a higher-than-expected profit for the eighth straight quarter, selling more of its GPS-based outdoor activity gadgets such as underwater watches, leading it to raise its full-year revenue forecast.
The Switzerland-based company’s shares were up 3.7% at $58.70 in premarket trading on Wednesday.
Garmin said it expects a revenue of $3.07 billion for the full year, above analysts’ average estimate of $3.04 billion, according to Thomson Reuters.
Revenue at the outdoor business, which makes wearable devices such as Fenix watches, rose 31.2% in the third quarter ended Sept. 30.
The aviation and marine units also buoyed the quarter, offsetting declines in fitness and its auto business.
The company’s net income rose to $147.4 million, or 78 cents per share, in the third quarter, from $125.1 million, or 66 cents, a year earlier.
It reported proforma earnings of 75 cents per share, above analysts’ estimate of 66 cents.
Garmin’s net sales rose to $743.1 million, above the average estimate of $721.2 million.
