GPS And Wearable Tech Firm Garmin Raises Annual Outlook, Cites Strong Product Lineup and Market Positioning

Garmin Ltd GRMN reported a third-quarter FY23 revenue growth of 12% year-on-year to $1.28 billion, beating the consensus of $1.21 billion. 

The GPS navigation and wearable technology company’s proforma EPS of $1.41 beat the consensus of $1.29. 

Revenue from Fitness grew by 26% Y/Y to $352.98 million, Outdoor improved by 7% Y/Y to $434 million, Aviation improved by 5% Y/Y to $198.16 million, Marine decreased by 7% Y/Y to $182.25 million, and Auto OEM grew 59% Y/Y to $110.15 million.

The gross margin declined by 180 bps to 57.0%. The operating margin was flat at 21.2%.

Garmin generated $312 million in free cash flow. It held $2.8 billion in cash and equivalents.

“Looking ahead, we are well positioned for the holiday selling season with a strong lineup of innovative products which gives us confidence to raise our outlook for the remainder of the year.” - Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.

Outlook: Garmin reiterated its FY23 revenue outlook to $5.05 billion, in line with the consensus.

Garmin raises proforma EPS outlook of $5.25 (prior $5.15) versus the consensus of $5.18.

 Price Action: GRMN shares traded higher by 7% at $109.71 on the last check Wednesday.