The manufacturer of navigation equipment, Garmin Ltd., surpassed third-quarter revenue projections and increased its annual sales prediction ahead of the critical holiday shopping season because of growth in its automotive and fitness divisions.
In an unstable economy, the firm has been relying on its wide range of products, which includes GPS units, smartwatches, and car technologies, to weather the decline in consumer and business expenditure.
According to LSEG, Garmin’s revenue for the three months ending September 30 increased by 12% to $1.28 billion, above analysts’ projections of $1.21 billion.
The business, which concluded the acquisition of JL Audio in September, stated that it now projects $5.15 billion in revenue and $5.25 per share in adjusted earnings for the year.
Before this, the business had projected adjusted profits per share of $5.15 and revenue of around $5.05 billion for the year.
“Looking ahead, we are well positioned for the holiday selling season with a strong lineup of innovative products, which gives us confidence to raise our outlook for the remainder of the year,” Cliff Pemble, our CEO, stated.
Increased shipments of domain controllers to BMW (BMWG.DE) drove a 59% increase in sales to $110.2 million in Garmin’s vehicle original equipment manufacturers sector in the third quarter.
Wearables’ robust demand drove a 26% growth to $353 million in sales for the company’s fitness division. Every section of Garmin saw an increase during the quarter except its marine division, which saw a 7% decline in revenue. When expenses are excluded, Garmin earned $1.41 per share, above analysts’ estimates of $1.29.
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