Garmin Q4 results: ‘they’re leader in fitness and marine lifestyle’

By:
on Feb 22, 2023
Updated: Jun 21, 2024
Listen
  • Garmin reports better-than-expected results for its fiscal Q4.
  • Argent Capital's Harrison shares his outlook on Garmin Ltd.
  • Garmin stock is currently up 5.0% versus the start of 2023.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Shares of Garmin Ltd (NASDAQ: GRMN) are up more than 5.0% on Wednesday after the technology company reported better-than-expected results for its fiscal fourth quarter.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Garmin’s outlook for the full year

Copy link to section

For 2023, the Kansas-based company now forecasts $5.0 billion in revenue – about a 3.0% annualised growth, as per the earnings press release.

It also plans on paying a cash dividend of $2.92 a share in four equal installments. Also on Wednesday, Argent Capital’s Scott Harrison said it was worth owning Garmin stock here.

I appreciate that Garmin is one of those stocks that might fly under the radar. Its technology goes into cockpits, auto, infotainment, wearables. They’re leader in the whole fitness and marine lifestyle.

His constructive view is in line with Wall Street that also currently rates this tech stock at “overweight”.

Notable figures in Garmin’s Q4 results

Copy link to section
  • Operating income tanked 15% year-on-year to $267 million
  • Earned $1.53 a share on a GAAP basis and $1.35 a share adjusted
  • Revenue also declined 6.0% versus last year to $1.31 billion
  • Consensus was $1.14 of adjusted EPS on $1.29 billion revenue
  • Gross margin improved by 150 basis points to 57%

Garmin recently secured FDA approval for its app that records ECG. On CNBC’s “Street Signs”, Harrison also said:

Garmin has a strong balance sheet with effectively zero debt. So, they’re generating strong cash flows. The innovation has provided them with customer loyalty and technology advantages that help separate them over time.

Year-to-date, Garmin stock is up about 5.0% at writing.

USA North America Stock Market Tech World