Garmin Increases Profit and Revenue Forecasts

(Reuters) – Garmin (NYSE:GRMN) raised its full-year profit and revenue forecasts on Wednesday, anticipating a surge in wearable product launches ahead of the holiday season to further boost demand. This development propelled the company's shares up 9.5% in premarket trading.

Strong Performance in Fitness Segment

Garmin's fitness segment, its second-largest by revenue, has demonstrated resilient growth in the first half of the year, primarily due to increased demand for wearables, easing concerns about sluggish consumer spending.

This trend continued into the third quarter, with the segment's revenue reaching $463.9 million, exceeding analysts' estimates of $396.1 million, according to data compiled by LSEG.

The company also reported positive developments regarding the number of downloads of its Garmin Connect app, which syncs with its wearables, and an increase in monthly active users (MAUs) during the quarter.

New Product Launches

Garmin has introduced new wearables ahead of the crucial holiday shopping period, leveraging its diverse product portfolio to navigate weaker spending from consumers and businesses in an uncertain economic landscape.

The company now projects full-year revenue of approximately $6.12 billion, up from its previous forecast of about $5.95 billion.

On a pro-forma basis, it anticipates a profit of $6.85 per share, compared to an earlier projection of $6.00.

For the quarter ending Sept. 30, Garmin reported revenue of $1.59 billion, surpassing analyst expectations of $1.44 billion, according to data from LSEG. The company’s profit of $1.99 per share (on a pro-forma basis) also exceeded analysts' expectations of $1.44.