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Garmin (GRMN) to Report Q1 Earnings: What's in the Offing?
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Garmin Ltd. (GRMN - Free Report) is scheduled to report first-quarter 2020 results on Apr 29. In the last reported quarter, it delivered a positive earnings surprise of 29%.
The company topped the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 20.7%.
Trend in Estimate Revision
For the first quarter, the Zacks Consensus Estimate for earnings has remained stable at 84 cents per share over the past 30 days. This indicates an increase of 15.1% from the year-ago reported figure.
Notably, the consensus mark for revenues is pegged at $838.39 million, implying growth of 9.4% from the year-ago reported figure.
Garmin reported fourth-quarter 2019 non-GAAP earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.00. Moreover, the figure improved 26% on a year-over-year basis and 1.6% sequentially.
Net sales came in at 1.102 billion, up 18% from the year-ago quarter and 18% sequentially. The top line also outpaced the Zacks Consensus Estimate of $998.6 million.
Let’s see how things have shaped up for this announcement.
Portfolio Strength - Key Catalyst
Product portfolio expansion remains the top priority for Garmin. In this regard, the company has been following a strategy of product introduction, acquisitions and strategic partnerships.
Notably, Garmin operates in five organized segments — Outdoor, Fitness, Marine, Auto/Mobile and Aviation.
During the quarter, it introduced an all-terrain GPS motorcycle navigator, zumo XT, in a bid to strengthen navigation offerings. The new device is expected to have strengthened the auto segment, which contributed 10% to total revenues in the last reported quarter.
Also, the company’s expanding portfolio of wearables and focus on the healthcare market are likely to have been major positives for the fitness segment.
All these factors are expected to have driven top-line growth in the soon-to-be-reported quarter.
However, coronavirus-induced challenging macro-economic environment is expected to have hurt the firm’s prospects in the near term.
Moreover, weak personal navigation device market might have been a headwind for Garmin’s Auto/Mobile segment.
Earnings Whispers
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. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Garmin has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Baidu, Inc. (BIDU - Free Report) has an Earnings ESP of +10.09% and a Zacks Rank of 2.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Garmin (GRMN) to Report Q1 Earnings: What's in the Offing?
Garmin Ltd. (GRMN - Free Report) is scheduled to report first-quarter 2020 results on Apr 29. In the last reported quarter, it delivered a positive earnings surprise of 29%.
The company topped the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 20.7%.
Trend in Estimate Revision
For the first quarter, the Zacks Consensus Estimate for earnings has remained stable at 84 cents per share over the past 30 days. This indicates an increase of 15.1% from the year-ago reported figure.
Notably, the consensus mark for revenues is pegged at $838.39 million, implying growth of 9.4% from the year-ago reported figure.
Garmin Ltd. Price and EPS Surprise
Garmin Ltd. price-eps-surprise | Garmin Ltd. Quote
Performance in the Last Reported Quarter
Garmin reported fourth-quarter 2019 non-GAAP earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.00. Moreover, the figure improved 26% on a year-over-year basis and 1.6% sequentially.
Net sales came in at 1.102 billion, up 18% from the year-ago quarter and 18% sequentially. The top line also outpaced the Zacks Consensus Estimate of $998.6 million.
Let’s see how things have shaped up for this announcement.
Portfolio Strength - Key Catalyst
Product portfolio expansion remains the top priority for Garmin. In this regard, the company has been following a strategy of product introduction, acquisitions and strategic partnerships.
Notably, Garmin operates in five organized segments — Outdoor, Fitness, Marine, Auto/Mobile and Aviation.
During the quarter, it introduced an all-terrain GPS motorcycle navigator, zumo XT, in a bid to strengthen navigation offerings. The new device is expected to have strengthened the auto segment, which contributed 10% to total revenues in the last reported quarter.
Also, the company’s expanding portfolio of wearables and focus on the healthcare market are likely to have been major positives for the fitness segment.
All these factors are expected to have driven top-line growth in the soon-to-be-reported quarter.
However, coronavirus-induced challenging macro-economic environment is expected to have hurt the firm’s prospects in the near term.
Moreover, weak personal navigation device market might have been a headwind for Garmin’s Auto/Mobile segment.
Earnings Whispers
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. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Garmin has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Pixelworks, Inc. (PXLW - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baidu, Inc. (BIDU - Free Report) has an Earnings ESP of +10.09% and a Zacks Rank of 2.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +8.17% and a Zacks Rank #2.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>