Garmin Ltd. (GRMN - Free Report) is leaving no stone unturned to strengthen footprint in the booming display market and aviation industry on the back of its innovative technologies.
This is evident from the company’s latest expansion of engine monitoring capability on its G600 TXi and G500 TXi flight displays. The move will enable the company’s Engine Indication System (EIS) TXi to include single-engine turboprop aircraft.
Notably, the system includes dynamic engine gauge limits and indications, engine timers, exceedance recordings and wireless flight data logging features.
Additionally, EIS TXi integrated with a fuel computer will enable pilots to monitor fuel calculations more precisely.
Further, Garmin’s latest move ensures visibility of engine information on 7-inch portrait display and a single 10.6-inch TXi display that can accommodate primary flight display information, a multifunction display and a vertical EIS strip.
Momentum Across Pilots & Aircrafts
All the above-mentioned initiatives are aimed at improving flight performance by reducing pilot’s workload.
EIS system with the expanded engine monitoring capability is capable enough to improve engine efficiency by helping pilots in reviewing aircraft engine performance data. Further, it helps in reducing the aircraft maintenance costs.
These benefits are likely to aid the company in gaining traction among the pilots as it benefits them in maintaining the aircrafts efficiently.
Further, the move is likely to bolster the adoption rate of Garmin’s G600 TXi and G500 TXi touchscreen flight displays across Pratt & Whitney PT6A turboprop powered aircrafts.
Currently, the latest display compatibility is available in Piper PA46-310P/350P JetPROP, Daher TBM 700/TBM 850 and Cessna 208/208B aircraft models.
Touchscreen Display Space, Aviation Unit Holds Promise
We believe this initiative of Garmin will help it to rapidly penetrate the potential touchscreen flight display market.
Consequently, this will aid the company in strengthening its position in the global touchscreen display market. Per a report from Transparency Market Research, this particular market is expected to reach $93.8 billion by 2024.
The market is benefiting from the technological advancement and radical shift from traditional slow and imprecise resistive mono touch to highly sensitive multi-touch capacitive screen.
Additionally, Garmin’s aviation business unit is likely to strengthen with enhanced engine monitoring capabilities. Notably, in first-quarter 2019, revenues in this segment were up 17.2% year over year and accounted for 22.3% of total revenues.
Consequently, the latest move is likely to drive the company’s top line.
Zacks Rank & Other Stocks to Consider
Garmin currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Computer and Technology sector are Koninklijke Philips N.V. (PHG - Free Report) , Universal Electronics Inc. (UEIC - Free Report) and AMETEK, Inc. (AME - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Koninklijke Philips, Universal Electronics and AMETEK is projected to be 15.5%, 15% and 9.61%, respectively.
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