Actions of Garmin (NASDAQ: GRMN) jumped 17% on Wednesday after the GPS technology company reported better-than-expected fourth quarter 2018 results and optimistic forward-looking forecasts.
Garmin's quarterly revenues grew 4% year-over-year to $ 932 million, which translates into a 26% increase in pro forma earnings to 193 , $ 6 million, or $ 1.02 per share. Analysts on average expected earnings of $ 0.80 per share on a $ 891.3 million business figure.
At Garmin, the 28% decline in automotive revenues (to $ 147.6 million) was more than offset by a combined 13% increase in aerospace, marine, outdoor and fitness products. In particular, the turnover of outdoor products has increased by 25% thanks to the "significant contributions" of the company's adventure watch lines.
CEO Cliff Pemble has described this year as "a year of remarkable growth in sales and operating profit". segments. "
For the year 2019, Garmin expects a turnover of 3.5 billion USD, against 3.35 billion USD in 2018, and well beyond the consensus forecasts, for an amount of 3.43 billion USD . This should result in earnings per share of $ 3.70 for 2019, up slightly from pro forma earnings of $ 3.69 per share in 2018, but again well above $ 3.52 per share. per share modeled by Wall Street.
In the end, while Garmin's consolidated growth did not really let up on its jaws, it was a simple quarterly beating followed by an encouraging guidance against expectations.
Steve Symington has no position in any of the mentioned actions. The Motley Fool has no position in any of the actions mentioned. Motley Fool has a disclosure policy.