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Garmin forecasts strong 2024 revenue, beats quarterly estimates

A large replica of a fitness smartwatch from Garmin is on display the international consumer technology fair IFA in Berlin, Germany September 2, 2022. REUTERS/Lisi Niesner/File Photo
A large replica of a fitness smartwatch from Garmin is on display the international consumer technology fair IFA in Berlin, Germany September 2, 2022. REUTERS/Lisi Niesner/File Photo

Navigation device maker Garmin (GRMN.BN), beat fourth-quarter earnings expectations and forecast full-year revenue above estimates last, betting on strong growth in its auto and fitness businesses.

Shares of the company rose about 5 per cent during Wednesday trading before the bell.

New product launches, such as the vívoactive 5 GPS smartwatch to its line-up of GPS devices, and collaborations with popular brands have helped the Swiss company drive up demand from customers in the auto and fitness industries.

Analysts say Garmin’s diverse range of offerings that cater to industries from marine to aviation have also provided it a cushion in an uncertain economy.

Garmin expects 2024 revenue of about $5.75 billion, above analysts’ estimates of $5.56 billion, according to LSEG data.

The company saw a 54 per cent rise in growth compared with a year earlier to $127.03 million from the auto original equipment manufacturers segment, bolstered by increased shipments of its domain controllers to BMW (BMWG.DE).

The company announced last month it will provide infotainment solutions to Yamaha Motor Co (7272.T) for selected models.

Its fitness segment, which offers wearables such as smartwatches and faces competition from Apple (AAPL.O), saw a 22 per cent rise in the quarter ended Dec. 30 from a year earlier to $412.08 million.

Last week, the company’s board approved a share repurchase program of up to $300 million.

Garmin reported revenue of $1.48 billion for the fourth quarter, compared with analysts’ estimates of $1.42 billion. Adjusted profit of $1.72 per share also topped expectations.

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