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Garmin Certifies Flight Displays, Boosts Aviation Business

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Garmin (GRMN - Free Report) subsidiary Garmin International recently announced the certification of G500H TXi touchscreen flight display that will boost its aviation business. The new flight display is exclusively designed for normal visual flight rule (“VFR”) helicopters that are already equipped with the G500H flight display, which makes it a lucrative upgrade.

Along with the certification, the company also received approval for the latest GTN 650/750 software for helicopters. The new software will enable G500H TXi flight display to connect to the navigator and enhance reliability in the cockpit. Moreover, it provides the helicopter operators with a smooth touchscreen continuity in the cockpit.

We believe Garmin is poised to benefit from the new flight display, which adds more capability and connectivity in the helicopter operations. Further, it also strengthens the company’s product portfolio. Notably, Aviation segment revenues increased 17.5% year over year in the third quarter, driven by new product introductions.

Coming to price performance, shares of Garmin have increased 1.9% over a period of one year, against the industry’s decline of 18.1%.

Product in Details

The G500H TXi touchscreen flight display is available in 10.6-inch and 7-inch touch displays. While the former can display both primary flight display (“PFD”) and multi-function display (“MFD”), the latter can display either a PFD or MFD.

The helicopter operators are also provided with multiple video input options and night vision goggles (“NVG”), with the new flight display. GTN features descent vertical navigation (“VNAV”) profiles which helps the pilot in planning for descent.

Moreover, the new feature also comes equipped with a panel of hazard avoidance solutions. This feature aids the pilot by alerting them regarding any plausible obstacles including terrains or towers on their way and enables them to choose a safer route accordingly.

The GTN 650/750 also features a QWERTY keyboard, which makes it easier for the pilot to input information. Additionally, to simplify the manner in which they enter GPS coordinates, the new software features Irish, Swiss and English coordinate systems.

Garmin Ltd. Price and Consensus

Garmin Ltd. Price and Consensus | Garmin Ltd. Quote

Solid Product Portfolio: A Key Growth Driver

Garmin’s strong product portfolio is the key catalyst and helps the company in acquiring clients across all business segments.

The company has been making significant investments in the Aviation business, which helped it to develop a solid product line. In September, Garmin acquired Flight Plan LLC (FltPlan), a provider of leading electronic flight planning, scheduling, and trip support services.

Recently, the company also unveiled a new GPS watch, Instinct. The watch features heart rate sensors, sports apps, smart connectivity and wellness data, enabling users to explore outdoor activities in a more challenging environment. Notably, it helps the company in expanding its share in the wearables market.

Garmin’s well-diversified product portfolio and acquisitions are expected to aid its performance and serve customers better.

Zacks Rank & Other Stocks to Consider

Currently, Garmin sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader computer and technology sector include Qualcomm (QCOM - Free Report) , Alteryx (AYX - Free Report) and Veeva Systems (VEEV - Free Report) . All the three stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.

Expected long-term earnings growth rate for Qualcomm, Alteryx and Veeva is 10.9%, 8% and 19.5%, respectively.

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