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Investing in Garmin (GRMN)? Don't Miss Assessing Its International Revenue Trends

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Have you assessed how the international operations of Garmin (GRMN - Free Report) performed in the quarter ended March 2025? For this maker of personal navigation devices, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

While delving into GRMN's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter stood at $1.54 billion, increasing 11.1% year over year. Now, let's delve into GRMN's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Dive into GRMN's International Revenue Trends

EMEA accounted for 37.06% of the company's total revenue during the quarter, translating to $568.95 million. Revenues from this region represented a surprise of +14.07%, with Wall Street analysts collectively expecting $498.76 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $701.52 million (38.49%) and $463.38 million (33.54%) to the total revenue, respectively.

Of the total revenue, $220.41 million came from APAC during the last fiscal quarter, accounting for 14.36%. This represented a surprise of -8.89% as analysts had expected the region to contribute $241.91 million to the total revenue. In comparison, the region contributed $266.49 million, or 14.62%, and $202.15 million, or 14.63%, to total revenue in the previous and year-ago quarters, respectively.

Revenue Forecasts for the International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Garmin will report a total revenue of $1.72 billion, which reflects an increase of 14.5% from the same quarter in the previous year. The revenue contributions are expected to be 34.1% from EMEA ($588.17 million) and 15.2% from APAC ($262.25 million).

For the full year, a total revenue of $6.83 billion is expected for the company, reflecting an increase of 8.4% from the year before. The revenues from EMEA and APAC are expected to make up 34.7% and 15.7% of this total, corresponding to $2.37 billion and $1.07 billion respectively.

Final Thoughts

Relying on international markets for revenues, Garmin faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Garmin currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Garmin's Recent Stock Price Performance

Over the past month, the stock has gained 3.1% versus the Zacks S&P 500 composite's 9.1% increase. The Zacks Computer and Technology sector, of which Garmin is a part, has risen 11.9% over the same period. The company's shares have declined 6.9% over the past three months compared to the S&P 500's 3.1% decline. Over the same period, the sector has declined 6.8%.

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