Garmin (GRMN) witnessed a 10% surge in its stock price on Wednesday following its impressive fourth-quarter financial report, which surpassed expectations. The multi-sport watches maker not only delivered a beat on both its top and bottom-line figures but also provided an optimistic revenue guidance for the current year.
CEO Cliff Pemble expressed confidence in the company’s momentum for 2024, attributing it to a robust product lineup and planned launches throughout the year.
In the fourth quarter, Garmin posted a pro forma EPS of $1.72, surpassing estimates by $0.32, with quarterly revenue reaching $1.48 billion, $60 million higher than consensus.
Notably, the Fitness segment reported a remarkable 22% increase in fourth-quarter revenues, driven by strong demand for wearables across all categories. However, the Aviation segment experienced a 4% decline in quarterly revenues, primarily due to decreases in aftermarket categories.
For the full year, Garmin recorded revenue of $5.23 billion, marking an 8% increase, and pro forma EPS of $5.59, up 9% from the previous year.
Garmin concluded the quarter with approximately $3.1 billion in cash and marketable securities, indicating a strong financial position moving forward.
