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Garmin (GRMN) to Report Q3 Earnings: What's in the Cards?
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Garmin (GRMN - Free Report) is scheduled to report third-quarter 2022 results on Oct 26.
For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $1.18 billion, indicating a decline of 1.26% from the year-ago quarter’s reported value.
Our estimate suggests net sales of $1.2 billion, reflecting a 0.8% increase from the prior-year period’s level.
The consensus mark for earnings per share is pegged at $1.10, suggesting a decline of 21.99% from the prior-year quarter’s reported figure. The consensus mark has moved 3.5% north in the past 7 days.
We expect earnings per share of $1.14, implying a decline of 19% from the year-ago quarter’s level.
Garmin’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same on one occasion, the average surprise being 4.72%.
Garmin’s continuous efforts toward introducing products are expected to have benefited its performance in third-quarter 2022.
Increasing demand for adventure watches is likely to have continued benefiting GRMN’s outdoor segment. During the quarter, GRMN introduced the Enduro 2 ultraperformance multisport GPS smartwatch featuring an LED flashlight, music capabilities, enhanced positioning precision abilities and a battery life of 150 hours in GPS mode. This is likely to have been a positive.
Growing adoption of marine products is likely to have contributed well to the marine segment in the second quarter. During the quarter, GRMN launched the LiveScope XR for coastal and open-water fishing. It also unveiled a chartplotter and transducer bundle named the LiveScope Plus Ice Fishing Bundle LI for hardwater fishing. These are likely to have driven segmental revenues in the quarter under review.
Rising contributions from OEM and aftermarket categories are anticipated to have continued supporting the aviation segment’s performance in theto-be-reported quarter.
Contributions from consumer categories and new OEM programs are likely to have continued benefiting the automotive segment in the quarter under discussion. During the quarter, GRMN introduced the all-in-one Tread Audio System with customizable LED speakers to provide an enhanced audio experience to drivers on the road. Further, GRMN’s Tread navigators were selected by Arctic Cat to outfit the new Wildcat XX Black Hills Edition side-by-side vehicles. These might have aided its segmental revenues.
However, the constant supply-chain challenges induced by the coronavirus pandemic are expected to have hurt the automotive revenues.
Additionally, Garmin has been witnessing weak demand for cycling products and advanced wearables for a while. This might have continued affecting its fitness segment in the underlined quarter.
The ongoing geopolitical tensions, strengthening of the U.S. dollar and increasing operating expenses are also expected to have remained a headwind in the third quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Garmin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Garmin has an Earnings ESP of -2.11% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Fortinet is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for FTNT’s earnings is pegged at 27 cents per share, suggesting an increase of 35% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
ZoomInfo Technologies (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank of 2 at present.
ZoomInfo Technologies is scheduled to release third-quarter 2022 results on Nov 1. The Zacks Consensus Estimate for ZI’s earnings is pegged at 20 cents per share, suggesting an increase of 53.9% from the prior-year quarter’s reported figure.
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Garmin (GRMN) to Report Q3 Earnings: What's in the Cards?
Garmin (GRMN - Free Report) is scheduled to report third-quarter 2022 results on Oct 26.
For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $1.18 billion, indicating a decline of 1.26% from the year-ago quarter’s reported value.
Our estimate suggests net sales of $1.2 billion, reflecting a 0.8% increase from the prior-year period’s level.
The consensus mark for earnings per share is pegged at $1.10, suggesting a decline of 21.99% from the prior-year quarter’s reported figure. The consensus mark has moved 3.5% north in the past 7 days.
We expect earnings per share of $1.14, implying a decline of 19% from the year-ago quarter’s level.
Garmin’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same on one occasion, the average surprise being 4.72%.
Garmin Ltd. Price and EPS Surprise
Garmin Ltd. price-eps-surprise | Garmin Ltd. Quote
Key Factors to Note
Garmin’s continuous efforts toward introducing products are expected to have benefited its performance in third-quarter 2022.
Increasing demand for adventure watches is likely to have continued benefiting GRMN’s outdoor segment. During the quarter, GRMN introduced the Enduro 2 ultraperformance multisport GPS smartwatch featuring an LED flashlight, music capabilities, enhanced positioning precision abilities and a battery life of 150 hours in GPS mode. This is likely to have been a positive.
Growing adoption of marine products is likely to have contributed well to the marine segment in the second quarter. During the quarter, GRMN launched the LiveScope XR for coastal and open-water fishing. It also unveiled a chartplotter and transducer bundle named the LiveScope Plus Ice Fishing Bundle LI for hardwater fishing. These are likely to have driven segmental revenues in the quarter under review.
Rising contributions from OEM and aftermarket categories are anticipated to have continued supporting the aviation segment’s performance in theto-be-reported quarter.
Contributions from consumer categories and new OEM programs are likely to have continued benefiting the automotive segment in the quarter under discussion. During the quarter, GRMN introduced the all-in-one Tread Audio System with customizable LED speakers to provide an enhanced audio experience to drivers on the road. Further, GRMN’s Tread navigators were selected by Arctic Cat to outfit the new Wildcat XX Black Hills Edition side-by-side vehicles. These might have aided its segmental revenues.
However, the constant supply-chain challenges induced by the coronavirus pandemic are expected to have hurt the automotive revenues.
Additionally, Garmin has been witnessing weak demand for cycling products and advanced wearables for a while. This might have continued affecting its fitness segment in the underlined quarter.
The ongoing geopolitical tensions, strengthening of the U.S. dollar and increasing operating expenses are also expected to have remained a headwind in the third quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Garmin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Garmin has an Earnings ESP of -2.11% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Fortinet (FTNT - Free Report) has an Earnings ESP of +0.92% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for FTNT’s earnings is pegged at 27 cents per share, suggesting an increase of 35% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
ZoomInfo Technologies (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank of 2 at present.
ZoomInfo Technologies is scheduled to release third-quarter 2022 results on Nov 1. The Zacks Consensus Estimate for ZI’s earnings is pegged at 20 cents per share, suggesting an increase of 53.9% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.