Worldwide provider of navigation, communications and information devices, Garmin Ltd. (GRMN - Free Report) recently completed the acquisition of Japan-based Iiyonet, Inc.
The financial terms of the purchase were not disclosed.
Based in Japan, Iiyonet Inc. distributes Garmin’s consumer products in that country. The deal will allow Garmin better access to the Asian market. The deal is in line with Garmin’s strategy to expand its presence in the developing Asian markets.
Post acquisition, Iiyonet, Inc., has become a subsidiary of Garmin Japan, Ltd. However, Iiyonet will continue to retain almost all of its management, sales, marketing and supporting staff. Also, its headquarters and warehouse facilities will remain in Saitama, which is near Tokyo.
Cliff Pemble, the president and CEO of Garmin said, “The acquisition of Iiyonet will further bolster our sales and distribution efforts in a key Asian market. This acquisition will enhance our ability to support our key retailers and OEMs in Japan.”
In the recently reported second quarter, Garmin reported robust results with both earnings and revenues surpassing the Zacks Consensus Estimate. Earnings of 87 cents per share surpassed the consensus mark by almost 30% and revenues of $811.6 million by 6.7%.
Also, revenues of $811.6 million were up 30.1% sequentially and 4.9% year over year. Revenues were helped by higher demand across the marine, outdoor, fitness and aviation segments.
The company is slated to report third-quarter results on Oct 26, 2016.
Established in 1989, Garmin has built a reputation in the consumer and professional navigational space. It is one of the leading providers of navigation devices in outdoor/fitness, aviation, marine and automotive markets. A superior portfolio of new products across segments, secular drivers in the aviation market, market share gains in the marine market and contribution from acquisitions are its other positives.
It is clear that the company is on the right track with regard to product offerings andexpansion plans.
At present, Garmin has a Zacks Rank #2 (Buy). Some other stocks worth considering in the industry are LinkedIn Corporation , TrueCar, Inc. (TRUE - Free Report) and MeetMe Inc. (MEET - Free Report) .
LinkedIn sports a Zacks Rank #1 (Strong Buy) and witnessed a 0.43% rise in its last day’s stock price. On average, the company delivered a positive earnings surprise of 115.2% in the trailing four quarters.
TrueCar, Inc. witnessed a 0.95% gain in its last day’s stock price. On average, the company delivered a positive earnings surprise 0.25% in the trailing four quarters. TrueCar currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MeetMe, Inc. also carries a Zacks Rank #2. On average, the company delivered a positive earnings surprise 53.6% in the trailing four quarters.
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