Garmin (GRMN), a maker of devices for outdoor recreation, fitness and navigation, on Wednesday smashed expectations for the fourth quarter. It also guided above views for the year ahead. Garmin stock rose in early trading.
The Olathe, Kan.-based company earned an adjusted $2.41 a share on sales of $1.82 billion in the December quarter. Analysts polled by FactSet had expected earnings of $2.05 a share on sales of $1.7 billion. On a year-over-year basis, Garmin earnings jumped 40% while sales increased 23%.
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For 2025, Garmin forecast adjusted earnings of $7.80 a share, up 5.5%, on revenue of $6.8 billion, up 8%. Wall Street was modeling earnings of $7.77 a share on sales of $6.73 billion. Last year, Garmin’s earnings per share increased 32% with revenue up 20%.
“We are entering 2025 with continued strong momentum from our robust product lineup and have many product launches planned during the year,” Chief Executive Cliff Pemble said in a news release.
All of Garmin’s product categories grew in the fourth quarter. It saw big increases in sales of fitness devices, up 31% year over year, and outdoor gadgets, up 29%. Top-selling products included fitness smartwatches and adventure watches.
Garmin Stock Is On Tech Leaders List
In other news, Garmin plans to increase its quarterly dividend by 20% to 90 cents a share from 75 cents.
In premarket trades on the stock market today, Garmin stock advanced 2.4% to 219.99.
Garmin stock hit a record high of 223.33 on Feb. 7 as it attempted a breakout from a cup-with-handle base, according to IBD MarketSurge charts. But the stock reversed and triggered an IBD sell rule as it fell below its 50-day moving average line.
Garmin stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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