(Reuters) – Swiss navigation device maker Garmin topped Wall Street expectations for first-quarter results on Wednesday, benefiting from new launches and strong demand for its products in fitness and auto segments.
Garmin, which offers GPS devices and technology used for fitness tracking, sports, aviation and marine sectors, has introduced upgrades on its devices and launched new products, which have powered revenue growth.
In the first quarter, it launched Forerunner 165 series, the latest addition to Garmin’s wearable lineup of GPS running smartwatches, fitted with personalized adaptive training plans.
It also increased efforts toward bolstering its Outdoor segment with newly launched products such as eTrex Solar, Garmin’s first solar-charging handheld GPS, and Descent G1 Solar Ocean Edition, a smartwatch made with recycled ocean plastics.
Garmin’s first-quarter revenue surged 20% to $1.38 billion, compared with analysts’ average estimate of $1.25 billion, according to LSEG data.
Revenue at its auto original equipment manufacturers segment jumped 58% to $129 million, thanks to an expansion in its customer base for domain controllers due to higher shipments to BMW.
Revenue at its fitness segment, which offers wearable like smartwatches, surged 40% to $342.9 million. Garmin’s adjusted profit of $1.42 per share exceeded expectations of $1.01, according to LSEG data.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur)
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