Garmin's Advanced Wearables Are In Demand, Surprises With Q1 Profit Growth
Portfolio Pulse from Anusuya Lahiri
Garmin Ltd (NYSE:GRMN) reported a 20% year-on-year revenue growth for Q1 2024, reaching $1.38 billion and surpassing the consensus of $1.25 billion. The company's proforma EPS of $1.42 also beat the consensus of $1.01. Revenue growth was seen across all segments, with Fitness growing by 40% and contributions from the acquisition of JL Audio boosting Marine revenue by 17%. Garmin's gross and operating margins improved, and it generated $402.14 million in free cash flow. The company intends to recommend a $3.00 per share dividend and reiterated its FY24 revenue outlook of $5.75 billion and proforma EPS of $5.40. Garmin stock has gained 47% in the last 12 months and saw an 8.82% increase to $157.21 recently. Investors can also gain exposure to Garmin through the Global X Internet Of Things ETF (NASDAQ:SNSR) and Procure Space ETF (NASDAQ:UFO).
May 01, 2024 | 1:47 pm
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POSITIVE IMPACT
Garmin reported strong Q1 2024 results with significant revenue and EPS beats, driven by demand for wearables and strategic acquisitions. The company also plans a $3 dividend and reaffirmed its FY24 outlook.
Garmin's better-than-expected Q1 performance, dividend announcement, and positive FY24 outlook are likely to boost investor confidence and demand for GRMN shares, contributing to a positive short-term price movement.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Global X Internet Of Things ETF (SNSR) offers exposure to Garmin, which reported strong Q1 2024 earnings, potentially increasing investor interest in SNSR.
As Garmin constitutes part of SNSR's portfolio, the positive earnings report and stock price increase for Garmin could lead to heightened interest and potentially positive price action for SNSR in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Procure Space ETF (UFO) provides exposure to Garmin, whose Q1 2024 earnings outperformance may attract investor attention to UFO.
Given Garmin's inclusion in UFO's holdings, the company's strong quarterly performance and subsequent stock rally might lead to increased investor interest in UFO, potentially impacting its price positively in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50