Garmin’s earnings report for the fourth quarter completely above the expectations of industry analysts, which caused the company’s stock to soar in today’s trade.
In the critically important December quarter, the company had sales of $932 million and an adjusted profit of $1.02 per share. Earnings of 80 cents per share on sales of $891 million were what Wall Street anticipated Garmin to achieve.
The total revenue for the company’s fiscal year was up by 7 percent, coming in at $3.35 billion. The aviation, marine, outdoor recreation, and fitness market all had significant growth of 16 percent, making it the standout performer. The Kansas-based company introduced a number of new wearables throughout the course of the previous year. These include the adventure watch known as Instinct, the diving computer known as Descent, and a variety of smartwatches that are compatible with music.
“2018 was another great year of revenue and operating income growth led by good performance in our aviation, marine, outdoor, and fitness sectors,” stated Chief Executive Cliff Pemble. “This growth was driven by strong performance in our aviation, marine, outdoor, and fitness segments.”
“As we go forward into 2019, we see numerous opportunities ahead and think that we are well positioned to grasp these chances with a solid range of products across all of our operational areas.” “As we move into 2019, we see many opportunities ahead and believe that we are well positioned to seize these opportunities.”
This year, the corporation anticipates realizing revenue of $3.5 billion, which will result in earnings of $3.70 per share. Earnings of $3.52 per share on revenue of $3.43 billion were the consensus estimate on Wall Street.
As part of Garmin’s efforts to strengthen its position in the indoor cycling industry, the company just recently finalized an agreement to acquire Tacx. As a result of the transaction, they will be able to add a high-quality line of indoor fitness training equipment and software to their product catalog, which they will be able to market by utilizing their extensive distribution network. Additionally, we anticipate the release of brand new smartwatches from the company in 2019, such as the Forerunner 945, the Vvoactive 4, and others.
The announcement caused the stock of the company to skyrocket, and it is currently trading at 82.28, which is a gain of 16 percent since this morning. Although not an all-time high, this is the highest level at which its shares have traded in more than a decade.