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What to Expect from Garmin (GRMN) this Earnings Season?
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Garmin Ltd. (GRMN - Free Report) , a leading provider of navigation, communication and information devices, is slated to report fourth-quarter 2016 results on Feb 22 before the bell.
The company has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the last one year, the stock has underperformed the Zacks Electronics - Miscellaneous Products industry. It gained 23.4% compared with the industry’s gain of 24.6%.
Per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. We don’t recommend Sell-rated stocks (Zacks Rank #4 or #5) going into the earnings announcement.
However, Garmin’s surprise history has been much impressive, since the company has beaten estimates in each of the last four quarters with an average positive surprise of 35.69%.
What Happened in the Third Quarter
Garmin’s third quarter earnings surpassed the Zacks Consensus Estimate on revenues that also beat estimates. The results were driven by solid performance in aviation, marine, outdoor and fitness segments. The auto segment however recorded revenue decline.
What We Are Watching this Time
Product line expansion continues to be Garmin’s top priority. In the third quarter, the company started shipments of vívofit jr., the company’s first wearable and companion mobile application for kids; Forerunner 35 multi-sport-capable running watch featuring built-in wrist-based heart rate and GPS and fenix Chronos line of a luxury activity watches.
Garmin also launched the VIRB Ultra 30, an ultra HD 4K/30fps action camera. The company made the first delivery of the G5000TM integrated flight deck for the Beechjet 400A/Hawker 400XP aircraft.
We expect that Garmin will continue to focus on innovation, diversification and market expansion to explore growth opportunities in all business segments.
Garmin focuses on delivering innovative products to the market, offering a complete experience via compelling form factors, wireless connectivity and sensors. This along with contribution from acquisitions is a positive. However, the secular decline in PNDs, increasing competition and pricing pressures are concerns.
Stocks to Consider
Here are some stocks, which you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
ARRIS International plc , expected to release earnings around Feb 22, has an Earnings ESP of +1.56% and carries a Zacks Rank #2.
Costco Wholesale Corp. (COST - Free Report) , expected to report earnings on Mar 2, currently has an Earnings ESP of +0.74% and a Zacks Rank #3.
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What to Expect from Garmin (GRMN) this Earnings Season?
Garmin Ltd. (GRMN - Free Report) , a leading provider of navigation, communication and information devices, is slated to report fourth-quarter 2016 results on Feb 22 before the bell.
The company has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the last one year, the stock has underperformed the Zacks Electronics - Miscellaneous Products industry. It gained 23.4% compared with the industry’s gain of 24.6%.
Per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. We don’t recommend Sell-rated stocks (Zacks Rank #4 or #5) going into the earnings announcement.
However, Garmin’s surprise history has been much impressive, since the company has beaten estimates in each of the last four quarters with an average positive surprise of 35.69%.
What Happened in the Third Quarter
Garmin’s third quarter earnings surpassed the Zacks Consensus Estimate on revenues that also beat estimates. The results were driven by solid performance in aviation, marine, outdoor and fitness segments. The auto segment however recorded revenue decline.
What We Are Watching this Time
Product line expansion continues to be Garmin’s top priority. In the third quarter, the company started shipments of vívofit jr., the company’s first wearable and companion mobile application for kids; Forerunner 35 multi-sport-capable running watch featuring built-in wrist-based heart rate and GPS and fenix Chronos line of a luxury activity watches.
Garmin also launched the VIRB Ultra 30, an ultra HD 4K/30fps action camera. The company made the first delivery of the G5000TM integrated flight deck for the Beechjet 400A/Hawker 400XP aircraft.
We expect that Garmin will continue to focus on innovation, diversification and market expansion to explore growth opportunities in all business segments.
Garmin Ltd. Price and EPS Surprise
Garmin Ltd. Price and EPS Surprise | Garmin Ltd. Quote
Summing Up
Garmin focuses on delivering innovative products to the market, offering a complete experience via compelling form factors, wireless connectivity and sensors. This along with contribution from acquisitions is a positive. However, the secular decline in PNDs, increasing competition and pricing pressures are concerns.
Stocks to Consider
Here are some stocks, which you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Dollar Tree Inc. (DLTR - Free Report) , expected to release earnings around Mar 7, has an Earnings ESP of +0.75% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ARRIS International plc , expected to release earnings around Feb 22, has an Earnings ESP of +1.56% and carries a Zacks Rank #2.
Costco Wholesale Corp. (COST - Free Report) , expected to report earnings on Mar 2, currently has an Earnings ESP of +0.74% and a Zacks Rank #3.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>