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Garmin (GRMN) to Report Q2 Earnings: What's in the Cards?

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Garmin (GRMN - Free Report) is scheduled to report second-quarter 2021 results on Jul 28.

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $1.07 billion, indicating growth of 23.2% from the year-ago reported value.

Further, the consensus mark for earnings per share is pegged at $1.23, indicating a 35.2% rise from the previous-year reported figure.

The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise being 64.1%.

Garmin Ltd. Price and EPS Surprise

Garmin Ltd. Price and EPS Surprise

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

Key Factors to Note

Garmin's solid momentum across fitness and outdoor segments is likely to get reflected in second-quarter results.

Strong demand for the company’s wearables and cycling products is likely to have continued aiding the fitness segment’s performance during the to-be-reported quarter. During the second quarter, it introduced Forerunner 55 and Venu 2 Series GPS smartwatches, which are likely to have benefited the segment’s quarterly performance.

Further, growing popularity of adventure watches for recreation amid the coronavirus pandemic is expected to have benefited Garmin’s outdoor segment performance in the quarter under review. Also, the company introduced Descent Mk2S during the underlined quarter, which is likely to have aided this segment.

In addition, growing demand for marine products is anticipated to have contributed well to the marine segment’s top-line growth in the to-be-reported quarter. During the second quarter, it introduced MS-RA60 marine stereo and MSC 10 marine satellite compass, which are expected to have aided the to-be-reported second-quarter results.

In the automotive segment, Garmin introduced dash cam series and dezl OTR500 during the second quarter. These products are anticipated to have aided the quarterly performance of the company’s auto segment.

Yet, higher freight costs and delays in sea freight are expected to get reflected in second-quarter results.

Further, sluggishness in the aviation segment might have remained a concern during the quarter to be reported.

Nevertheless, global recovery might have been a major positive for Garmin’s aviation business.

During the second quarter, the company introduced TXi- engine indication system support for twin turboprop aircraft. Also, Garmin’s G5000 integrated flight deck was chosen by Deutsche Aircraft for the D328eco regional turboprop aircraft. These positives are likely to get reflected in the upcoming results. Further the AeroData acquisition is expected to have contributed to top-line growth of the aviation segment.

What Our Model Says

Our proven model predicts 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 +4.54% and a Zacks Rank #2, at present.

Other Stocks to Consider

Here are some other stocks that you may also consider, as our model shows that these too have the right combination of elements to beat on earnings this season.

Carrier Global Corporation (CARR - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank of 2, at present.

Fortinet (FTNT - Free Report) has an Earnings ESP of +2.11% and a Zacks Rank of 2, at present.

MettlerToledo International (MTD - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.