Outdoor recreation, fitness and navigation device maker Garmin (GRMN) on Wednesday smashed Wall Street’s targets for the second quarter. Garmin stock rose in early trading.
The Olathe, Kan.-based company earned an adjusted $1.68 a share on sales of $1.33 billion in the June quarter. Analysts expected Garmin earnings of $1.25 a share on sales of $1.11 billion. On a year-over-year basis, Garmin earnings jumped 85% while sales climbed 53%.
The company’s five product categories all posted strong double-digit percentage sales gains. Fitness device sales rose 40% to $413 million. Outdoor device sales increased 57% to $323 million. Aviation device sales advanced 43% to $181 million. Marine device sales popped 66% to $262 million. Auto device sales surged 74% to $148 million.
“Strong demand for active lifestyle products continued, and we experienced solid recovery within our aviation and auto segments resulting in record revenue and profits in the second quarter,” Chief Executive Cliff Pemble said in a news release.
Garmin Stock Rises
Based on the strong second-quarter results, Garmin raised its full-year guidance for revenue and earnings per share.
For 2021, Garmin now expects to earn an adjusted $5.50 a share on sales of $4.9 billion. It previously guided to earnings of $5.15 a share on sales of $4.6 billion.
In morning trading on the stock market today, Garmin stock rose 0.5%, near 152.75.
Garmin stock is the top-rated stock in IBD’s consumer electronics industry group. It has an IBD Composite Rating of 85 out of 99. The Composite Rating scores a stock’s key growth metrics against all other stocks regardless of industry group.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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