The most recent quarterly earnings report from Garmin demonstrates that the company is still the leader in the GPS sector.

 When Garmin released its results for the second quarter, both its revenues and its profitability were better than what was expected by Wall Street.

Garmin reported total revenue of $894 million for the three months that ended in June, an increase of 8% compared to the same time period in the previous year. This was the fourth straight quarter in which the company exceeded sales projections, and it was higher than the $852.2 that was anticipated by the markets. Earnings of 99 cents per share were 12 cents higher than what was expected of the company.

The data is presented in the following table.

Nearly every aspect displayed signs of having improved. The sales of aviation, maritime, and fitness products all increased by around a quarter in comparison to the previous year. The only division that failed to meet expectations was Garmin’s automobile division, which had a sales decline of 19 per cent. This business was formerly the company’s primary source of revenue.

During the earnings call, Garmin CEO Cliff Pemble stated, “We are delighted with our success in the first half of 2018, and these strong results give us optimism to improve our full-year outlook.”

“...Looking ahead, we feel that we are well-placed in the market, with a robust line-up of cycling products and wearables,”

The United States was responsible for the majority of revenue, contributing around 49 per cent (or 8.9 per cent of the total) to the whole sum. 35 per cent came from EMEA, which was down 1.8 per cent from the previous year, and 16 per cent came from APAC, which was up 28.4 per cent.

Garmin’s basic fitness app category continues its downward trajectory, which is in line with the general trends of the market. Nonetheless, this was more than compensated for by expansion in a number of other categories, most notably sports watches. In the most recent few months, we witnessed the launch of the Vivoactive 3 Music and the Fenix 5 Plus, both of which undoubtedly contributed to significant revenue.

The corporation has carved out a space for itself in the market, and it is absolutely justified in ensuring that it maintains its position as the dominant player in the GPS industry. After all, this is the tactic that brought it to the position it is in right now.

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