Shares of Garmin (NASDAQ: GRMN) jumped 17% on Wednesday after the GPS technology company announced better-than-expected fourth-quarter 2018 results and upbeat forward guidance
Garmin's quarterly revenue climbed 4% year over year to $ 932 million, translating into a 26% increase in pro forma earnings to $ 193.6 million, or $ 1.02 per share. The analyst, on average, was only expecting earnings of $ 0.80 per share on the revenue of $ 891.3 million.
Within Garmin's top line, A 28% decline in the automotive segment revenue (to $ 147.6 million) was more than offset by a combined 13% increase from its aviation, marine, outdoor, and fitness products. In particular, outdoor product revenue climbed 25% thanks to "significant contributions" from the company's adventure watch lines.
CEO Cliff Pemble called it "remarkable year of income and operating income growth," and added: "Entering in 2019, we This is a lot of opportunities ahead and I believe that we are well positioned to seize these opportunities with a strong lineup of products across all our segments. "
For the full year 2019, Garmin expects revenue of $ 3.5 billion, up from $ 3.35 billion in 2018 and well above consensus estimates for $ 3.43 billion, assuming that automotive declines will only partially offset growth from its remaining segments. That should translate to 2019 earnings per share of $ 3.70, up slightly from a pro forma earnings of $ 3.69 per share in 2018, but again well above $ 3.52 per share Wall Street was modeling.
In the end, while Garmin's consolidated growth is not exactly dropping any jaws, this was a straightforward quarterly beat followed by encouraging guidance relative to expectations.
Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.