Garmin Ltd. (GRMN - Free Report) delivered second-quarter 2019 pro-forma earnings of $1.16 per share, beating the Zacks Consensus Estimate by 16 cents. The figure improved 17.2% on a year-over-year basis and 58.9% sequentially.
Net sales came in $954.84 million, up 7% from the year-ago quarter and 24.6% from the previous quarter. Further, the figure outpaced the Zacks Consensus Estimate of $919.07 million.
Strong performance of its fitness, outdoor, marine and aviation segments drove year-over-year top-line growth.
Management is focused on continued innovation, diversification and market expansion to explore growth opportunities in all its business segments.
Outdoor (22% of net sales): The company generated sales of $210.4 million from this segment in the second quarter, improving 4.3% year over year. The year-over-year increase was primarily driven by robust demand for Garmin’s golf wearables, Instinct adventure watch and inReach devices.
Fitness (26.3%): This segment generated sales of $251.65 million, advancing 12% from the year-ago quarter. This can primarily be attributed to its well-performing running wearables. Further, positive contributions from Tacx buyout were positives.
Marine (15.9%): Garmin generated sales of $151.41 million from this segment, increasing 13% on a year-over-year basis. The company witnessed growing demand for its chartplotters and Panoptix LiveScope sonars during the reported quarter which drove the segment’s top line.
Auto (16.5%): This segment generated sales of $157.41 million, down 12.6% from the prior-year quarter. The decline was mainly owing to shrinking of the personal navigation device (PND) market.
Aviation (19.3%): The segment generated sales of $183.96 million, surging 20.2% on a year-over-year basis. This can primarily be attributed to the well-performing aftermarket systems and ADS-B solutions. Further, the company’s solid momentum in OEM category contributed to the results.