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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 2021 results on Oct 27.

For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $1.15 billion, indicating growth of 3.7% from the year-ago reported value.

The consensus mark for earnings per share is pegged at $1.27, suggesting a decline of 19.6% from the prior-year reported figure.

The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 38.4%.

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 third-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.

Further, the 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. Additionally, the company introduced a portable golf launch monitor named Approach R10 and a new widget for surfing enthusiasts called the Surfline widget during the underlined quarter, which is likely to have aided this segment.

In addition, the growing demand for marine products is anticipated to have contributed well to the marine segment’s top-line growth in the third quarter. During this quarter, it introduced Apollo Series amplifiers and Garmin Surround View Camera System, which are expected to aid the upcoming results. Also, Garmin got selected as standard equipment on Malibu Boats’ Axis wakesurf and wakeboard boat line, which might have remained a tailwind.

Apart from this, growing contributions from consumer categories and new OEM programs are anticipated to have continued aiding the quarterly performance of the company’s automotive segment.

Further, the aviation business recovery might have been a major positive for the company. During the third quarter, it received GFC 600 autopilot certification for Piper Meridian aircraft and European Union Aviation Safety Agency approval of G1000 NXi updates for the Citation Mustang aircraft. These positives are likely to get reflected in the upcoming results.

Yet, increasing advertising expenses owing to higher expenditure in the fitness and outdoor segments are likely to have affected the quarterly performance. Also, higher supply chain costs are expected to get reflected in third-quarter results.

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. 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 #3, at present.

Stocks to Consider

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

Apple (AAPL - Free Report) has an Earnings ESP of +5.69% and a Zacks Rank of 3, at present.

Clarivate PLC (CLVT - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank of 2, at present.

Fortive Corporation (FTV - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In-Depth Zacks Research for the Tickers Above

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Apple Inc. (AAPL) - free report >>

Garmin Ltd. (GRMN) - free report >>

Fortive Corporation (FTV) - free report >>

Clarivate PLC (CLVT) - free report >>