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Garmin (GRMN - Free Report) has introduced a height advisor, namely GHA 15 for experimental and light sport aircraft.
Notably, GHA 15, which is small in size and lightweight, offers height above ground level (AGL) information on G3X Touch flight displays by leveraging radar technology.
More precisely, the device is designed to send radio waves and determine signal receiving time in order to calculate height AGL.
Further, it is capable of delivering continuous readings over water as well as in various terrains as it utilizes advanced digital filters.
It is also well-equipped to process several measurements per second.
We believe Garmin is likely to see solid deployment of GHA 15 across experimental and light sport aircrafts.
Notably, GHA 15 will be available next month onward.
The latest move is in sync with the company’s concerted efforts to expand its aviation offerings.
Apart from GHA, Garmin introduced PlaneSync, which automates database updates, provides real-time status updates, and securely uploads flight logs to the cloud, making it an ideal aircraft management system for both individual and fleet ownership.
Also, it enables aircraft owners to easily check aircraft status using Garmin Pilot app or D2 Mach 1 smartwatch. It enables them to see location, fuel and GPS tracking for clubs and multiple-owner aircraft. On the back of robust aviation solutions, Garmin has secured supplemental type certifications (STC) from Federal Aviation Administration (FAA).
Garmin recently received an STC for the usage of GI 275 electronic flight instrument in Bell 407 and Robinson R66 helicopters. With GI 275, old flight instruments like the attitude indicator, CDI, HSI and MFD are no longer needed.
Additionally, the company received STC for the usage of GFC 600 digital autopilot in the Piper PA-31-350 Navajo Chieftain aircraft. GFC 600 is designed to offer a full-featured autopilot with advanced capabilities such as altitude pre-select and VNAV capability when paired with a GTN or GTN Xi series navigator.
Bottom Line
The abovementioned endeavors are expected to aid Garmin’s presence in the avionics market, which per a report from MarketsandMarkets, is projected to hit $50.4 billion in 2023 and reach $66.3 billion by 2027, registering a CAGR of 7.3% between 2022 and 2027.
Moreover, its expanding portfolio and STC wins from FAA are expected to continue aiding the performance of Garmin’s aviation segment.
In first-quarter 2023, the segment generated sales of $213.6 million, which increased 22% on a year-over-year basis. The figure accounted for 19% of total sales.
The Zacks Consensus Estimate for 2023 aviation sales is pegged at $856.03 million, indicating growth of 8% from the reported figure in 2022.
We believe the strengthening aviation segment is expected to contribute to the overall performance of the company. This, in turn, will instill investor optimism in the stock.
For 2023, Garmin expects revenues of $5 billion and pro-forma earnings per share of $5.15.
The Zacks Consensus Estimate for 2023 revenues is pegged at $5.07 billion, indicating growth of 4.3% from 2022. The consensus mark for 2023 earnings stands at $5.24 per share, indicating year-over-year growth of 2%.
Garmin shares have gained 16.4% in the year-to-date period, underperforming the Zacks Electronic product industry’s rally of 19.4% and the Zacks Computer & Technology sector’s return of 41.6%.
Garmin's underperformance relative to the industry may be influenced by factors such as increased competition, supply-chain constraints and macroeconomic headwinds.
Image: Bigstock
Garmin (GRMN) Expands Aviation Portfolio, Unveils GHA 15
Garmin (GRMN - Free Report) has introduced a height advisor, namely GHA 15 for experimental and light sport aircraft.
Notably, GHA 15, which is small in size and lightweight, offers height above ground level (AGL) information on G3X Touch flight displays by leveraging radar technology.
More precisely, the device is designed to send radio waves and determine signal receiving time in order to calculate height AGL.
Further, it is capable of delivering continuous readings over water as well as in various terrains as it utilizes advanced digital filters.
It is also well-equipped to process several measurements per second.
We believe Garmin is likely to see solid deployment of GHA 15 across experimental and light sport aircrafts.
Notably, GHA 15 will be available next month onward.
Garmin Ltd. Price and Consensus
Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote
Portfolio Strength
The latest move is in sync with the company’s concerted efforts to expand its aviation offerings.
Apart from GHA, Garmin introduced PlaneSync, which automates database updates, provides real-time status updates, and securely uploads flight logs to the cloud, making it an ideal aircraft management system for both individual and fleet ownership.
Also, it enables aircraft owners to easily check aircraft status using Garmin Pilot app or D2 Mach 1 smartwatch. It enables them to see location, fuel and GPS tracking for clubs and multiple-owner aircraft.
On the back of robust aviation solutions, Garmin has secured supplemental type certifications (STC) from Federal Aviation Administration (FAA).
Garmin recently received an STC for the usage of GI 275 electronic flight instrument in Bell 407 and Robinson R66 helicopters. With GI 275, old flight instruments like the attitude indicator, CDI, HSI and MFD are no longer needed.
Additionally, the company received STC for the usage of GFC 600 digital autopilot in the Piper PA-31-350 Navajo Chieftain aircraft. GFC 600 is designed to offer a full-featured autopilot with advanced capabilities such as altitude pre-select and VNAV capability when paired with a GTN or GTN Xi series navigator.
Bottom Line
The abovementioned endeavors are expected to aid Garmin’s presence in the avionics market, which per a report from MarketsandMarkets, is projected to hit $50.4 billion in 2023 and reach $66.3 billion by 2027, registering a CAGR of 7.3% between 2022 and 2027.
Moreover, its expanding portfolio and STC wins from FAA are expected to continue aiding the performance of Garmin’s aviation segment.
In first-quarter 2023, the segment generated sales of $213.6 million, which increased 22% on a year-over-year basis. The figure accounted for 19% of total sales.
The Zacks Consensus Estimate for 2023 aviation sales is pegged at $856.03 million, indicating growth of 8% from the reported figure in 2022.
We believe the strengthening aviation segment is expected to contribute to the overall performance of the company. This, in turn, will instill investor optimism in the stock.
For 2023, Garmin expects revenues of $5 billion and pro-forma earnings per share of $5.15.
The Zacks Consensus Estimate for 2023 revenues is pegged at $5.07 billion, indicating growth of 4.3% from 2022. The consensus mark for 2023 earnings stands at $5.24 per share, indicating year-over-year growth of 2%.
Garmin shares have gained 16.4% in the year-to-date period, underperforming the Zacks Electronic product industry’s rally of 19.4% and the Zacks Computer & Technology sector’s return of 41.6%.
Garmin's underperformance relative to the industry may be influenced by factors such as increased competition, supply-chain constraints and macroeconomic headwinds.
Zacks Rank & Stocks to Consider
Currently, Garmin carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Salesforce (CRM - Free Report) , Akamai Technologies (AKAM - Free Report) and AvidXchange (AVDX - Free Report) . Salesforce sports a Zacks Rank #1 (Strong Buy), while Akamai Technologies and AvidXchange carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Salesforce shares have gained 70.7% in the year-to-date period. The long-term earnings growth rate for CRM is currently projected at 19.25%.
Akamai shares have gained 9.5% in the year-to-date period. The long-term earnings growth rate for AKAM is currently projected at 10%.
AvidXchange shares have increased 21.1% in the year-to-date period. The long-term earnings growth rate for AVDX is currently projected at 22.90%.