We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Garmin (GRMN) to Report Q4 Earnings: What's in the Offing?
Read MoreHide Full Article
Garmin Ltd. (GRMN - Free Report) is scheduled to report fourth-quarter 2018 results on Feb 20.
The company topped the Zacks Consensus Estimate in all the trailing four quarters, recording average of 18.47%.
In the last reported quarter, Garmin delivered a positive earnings surprise of 33.33%. Earnings of $1 per share were up 1% sequentially and 33.3% year over year.
Revenues of $810 million beat the Zacks Consensus Estimate of $776 million, decreasing 9.4% sequentially but increasing 7.8% from the prior-year quarter.
Increasing demand across the company’s fitness, outdoor, marine and aviation segments drove top-line growth in the third quarter.
For full-year 2018, management maintained its revenue guidance at $3.3 billion but increased pro-forma earnings expectation to $3.45 per share versus earlier projection of $3.30.
The Zacks Consensus Estimate for 2018 revenues and earnings is pegged at $3.31 billion and $3.47 per share, respectively.
We observe that shares of Garmin have gained 9.8% in the past year against its industry’s decline of 3.9%.
Let’s see how things are shaping up for the to-be-reported quarter.
Portfolio Strength – A Key Catalyst
Product portfolio expansion remains the top priority for Garmin. The company has been following a strategy of product introductions, acquisitions and strategic partnerships in this regard.
In sync with this strategy, the company is focusing on building a community of users. This will ensure increased engagement with its products, which will continue to drive top-line growth and aid market share.
The company operates in five organized segments — Outdoor, Fitness, Marine, Auto/Mobile and Aviation. A solid portfolio is expected to have aided the company’s performance across all the segments in the fourth quarter.
The Outdoor segment remains a significant growth driver. Currently, Garmin is witnessing notable success in this segment on the back of new technologies and increasing demand for wearables on a worldwide basis.
The company unveiled a new GPS golf device — Approach G80 — to help golfers improve their game. This new device will further expand its outdoor portfolio.
In addition, it unveiled GTR 200B, a communication radio and Bluetooth-equipped intercom for experimental aircraft. The new device is expected to reduce pilots' workload in the cockpit and boost the company’s aviation business.
Garmin’s expanding portfolio of wearables and strength in cycling are major positives for the fitness segment.
All these factors are expected to drive the company’s top-line growth in the soon-to-be-reported quarter.
However, weak personal navigation device (PND) market remains a headwind for Garmin’s Auto/Mobile segment.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Garmin currently holds a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult.
Stocks That Warrant a Look
Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Square, Inc. (SQ - Free Report) has an Earnings ESP of +5.95% and a Zacks Rank #2.
Gogo Inc. (GOGO - Free Report) has an Earnings ESP of +9.46% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Garmin (GRMN) to Report Q4 Earnings: What's in the Offing?
Garmin Ltd. (GRMN - Free Report) is scheduled to report fourth-quarter 2018 results on Feb 20.
The company topped the Zacks Consensus Estimate in all the trailing four quarters, recording average of 18.47%.
In the last reported quarter, Garmin delivered a positive earnings surprise of 33.33%. Earnings of $1 per share were up 1% sequentially and 33.3% year over year.
Revenues of $810 million beat the Zacks Consensus Estimate of $776 million, decreasing 9.4% sequentially but increasing 7.8% from the prior-year quarter.
Increasing demand across the company’s fitness, outdoor, marine and aviation segments drove top-line growth in the third quarter.
For full-year 2018, management maintained its revenue guidance at $3.3 billion but increased pro-forma earnings expectation to $3.45 per share versus earlier projection of $3.30.
The Zacks Consensus Estimate for 2018 revenues and earnings is pegged at $3.31 billion and $3.47 per share, respectively.
We observe that shares of Garmin have gained 9.8% in the past year against its industry’s decline of 3.9%.
Let’s see how things are shaping up for the to-be-reported quarter.
Portfolio Strength – A Key Catalyst
Product portfolio expansion remains the top priority for Garmin. The company has been following a strategy of product introductions, acquisitions and strategic partnerships in this regard.
In sync with this strategy, the company is focusing on building a community of users. This will ensure increased engagement with its products, which will continue to drive top-line growth and aid market share.
The company operates in five organized segments — Outdoor, Fitness, Marine, Auto/Mobile and Aviation. A solid portfolio is expected to have aided the company’s performance across all the segments in the fourth quarter.
The Outdoor segment remains a significant growth driver. Currently, Garmin is witnessing notable success in this segment on the back of new technologies and increasing demand for wearables on a worldwide basis.
The company unveiled a new GPS golf device — Approach G80 — to help golfers improve their game. This new device will further expand its outdoor portfolio.
In addition, it unveiled GTR 200B, a communication radio and Bluetooth-equipped intercom for experimental aircraft. The new device is expected to reduce pilots' workload in the cockpit and boost the company’s aviation business.
Garmin’s expanding portfolio of wearables and strength in cycling are major positives for the fitness segment.
All these factors are expected to drive the company’s top-line growth in the soon-to-be-reported quarter.
However, weak personal navigation device (PND) market remains a headwind for Garmin’s Auto/Mobile segment.
Garmin Ltd. Price and EPS Surprise
Garmin Ltd. Price and EPS Surprise | Garmin Ltd. Quote
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Garmin currently holds a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult.
Stocks That Warrant a Look
Here are a few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Frontline Ltd. (FRO - Free Report) has an Earnings ESP of +4.17% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Square, Inc. (SQ - Free Report) has an Earnings ESP of +5.95% and a Zacks Rank #2.
Gogo Inc. (GOGO - Free Report) has an Earnings ESP of +9.46% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>