Why Is Garmin Stock Trading Up Wednesday?
Portfolio Pulse from Anusuya Lahiri
Garmin Ltd (NYSE:GRMN) stock rose after reporting Q4 results with revenue growth of 13% Y/Y to $1.48 billion, surpassing the consensus of $1.42 billion. Proforma EPS was $1.72, beating the consensus of $1.40. The company saw growth in Fitness, Outdoor, and Marine segments, while Aviation declined. Garmin announced a dividend of $3.00 per share and authorized a $300 million share repurchase. FY24 revenue is expected to be $5.75 billion, above consensus, but projected EPS of $5.40 is below consensus. GRMN shares were up 5% in premarket trading.
February 21, 2024 | 2:23 pm
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POSITIVE IMPACT
Garmin reported strong Q4 results with higher than expected revenue and EPS, announced a dividend, and authorized a share repurchase program. FY24 revenue outlook is positive, but EPS projection is below consensus.
Garmin's strong Q4 performance and optimistic revenue outlook for FY24, combined with shareholder-friendly actions like dividends and share repurchases, are likely to positively impact its stock price in the short term. The only caution is the lower projected EPS for FY24, which might temper some of the enthusiasm.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100