Back to top

Image: Bigstock

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

Read MoreHide Full Article

Garmin Ltd. GRMN 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 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 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.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

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