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Garmin (GRMN) to Report Q4 Earnings: What's in the Offing?

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Garmin Ltd. (GRMN - Free Report) is scheduled to report fourth-quarter 2019 results on Feb 17. In the last reported quarter, it delivered a positive earnings surprise of 35.1%.

The company topped the Zacks Consensus Estimate in all the trailing four quarters, recording an average of 20.8%.

Trend in Estimate Revision

For the fourth quarter, the Zacks Consensus Estimate for earnings has remained stable at $1.00 per share over the past 30 days. This indicates a decline of 1.96% from the year-ago reported figure.

Notably, the consensus mark for revenues is pegged at $998.6 million, implying growth of 7.1% from the year-ago reported figure.

Garmin Ltd. Price and EPS Surprise

 

Performance in the Last Reported Quarter

Garmin reported third-quarter 2019 non-GAAP earnings of $1.27 per share, which surpassed the Zacks Consensus Estimate by 33 cents and increased 27% from the year-ago period.

Net sales came in at $934.4 million, up 15% from the year-ago quarter. Further, the figure outpaced the Zacks Consensus Estimate of $863.9 million.

Let’s see how things have shaped up for this announcement.

Portfolio Strength - Key Catalyst

Product portfolio expansion remains the top priority for Garmin. In this regard, the company has been following a strategy of product introduction, acquisitions and strategic partnerships.

Notably, Garmin operates in five organized segments — Outdoor, Fitness, Marine, Auto/Mobile and Aviation.

During the quarter, it introduced a multisport GPS smartwatch — tactix Delta — for outdoor enthusiasts and professionals in a bid to expand in the outdoor segment. The company also introduced a GPS smartwatch, Approach S62, designed for golfers.

The introduction of new products in all segments and a solid portfolio are expected to have aided its segmental performance in the fourth quarter. Also, the company’s expanding portfolio of wearables and focus on the healthcare market are likely to have been major positives for the fitness segment.

All these factors are expected to have driven top-line growth in the soon-to-be-reported quarter.

However, weak personal navigation device market might have been a headwind for Garmin’s Auto/Mobile segment.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Garmin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: The company has 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.

Zacks Rank: Currently, Garmin has a Zacks Rank #3.

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.

Broadcom Inc. (AVGO - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank of 2.

Square, Inc.(SQ - Free Report) has an Earnings ESP of +3.59% and a Zacks Rank #3.

Applied Optoelectronics, Inc. (AAOI - Free Report) has an Earnings ESP of +8.12% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Garmin Ltd. (GRMN) - free report >>

Broadcom Inc. (AVGO) - free report >>

Applied Optoelectronics, Inc. (AAOI) - free report >>

Square, Inc. (SQ) - free report >>