(Reuters) – Garmin beat second-quarter revenue estimates and raised full-year forecast on Wednesday, helped by strong demand for the navigation device makers’ product launches and upgrades in the fitness and auto segment.
Shares of the company rose 1.7% in premarket trading.
The company’s robust portfolio and long-term agreements with clients across fitness, marine, aviation and auto original equipment manufacturers (OEM) have aided its revenue in the quarter.
In the second quarter, Garmin unveiled the Approach Z30 smart laser range for golfers and the smart cycling computer Edge 1050 for navigation and connectivity.
Garmin’s second-quarter revenue surged 14% to $1.51 billion, compared with analysts’ average estimates of $1.42 billion, according to LSEG data.
The company also now expects full-year 2024 revenue to be approximately $5.95 billion, from earlier expectations of $5.75 billion.
Revenue in the quarter from the fitness segment increased 28% to $428.4 million, led by strong demand for advanced wearables such as Edge 1050 premium cycling computers.
The auto OEM segment’s revenue rose 41% to $147.2 million, primarily due to increased demand for its domain controllers.
Garmin reported earnings per share of $1.56 compared with $1.50 a year earlier.
(Reporting by Priyanka.G in Bengaluru; Editing by Vijay Kishore)
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