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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 2021 results on Apr 28.

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $931.8 million, indicating growth of 8.9% from the prior-year reported figure.

Further, the Zacks Consensus Estimate for earnings stands at $88 cents per share, suggesting a decline of 3.3% from the year-ago reported figure.

The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 57.6%.

Garmin Ltd. Price and EPS Surprise

Garmin Ltd. Price and EPS Surprise

Garmin Ltd. price-eps-surprise | Garmin Ltd. Quote

Factors to Note

Garmin’s strength across fitness and marine segments is expected to have benefited its first-quarter performance.

In the marine segment, robust chartplotters and advanced sonar technology are expected to have contributed well to the segment’s top-line growth in the quarter under review. Also, growing popularity of boating and fishing amid the ongoing pandemic is likely to have aided the Marine segment’s first-quarter performance.

Markedly, solid momentum across the company’s advanced wearables and cycling products is likely to have continued aiding the fitness segment’s performance during the to-be-reported quarter. Further, contributions from the Firstbeat Analytics acquisition are expected to have benefited the segment.

Further, robust adventure watches are expected to have benefited Garmin’s outdoor segment performance in the quarter under review. Also, integration of the solar harvesting technology in adventure smartwatches is expected to have remained a tailwind for the segment.

However, sluggishness in the aviation segment is expected to have been a concern. Uncertainties associated with the ongoing pandemic are likely to have continued hurting its OEM partners.

Nevertheless, strengthening momentum across Specialty RV and truck categories is anticipated to have contributed well to the company’s quarterly performance.

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. 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 0.00% and a Zacks Rank #4 (Sell), at present.

Stocks to Consider

Here are some stocks you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Waters Corporation (WAT - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Verizon Communications Inc. (VZ - Free Report) has an Earnings ESP of +0.80% and a Zacks Rank #3.

NXP Semiconductors N.V. (NXPI - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3.

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