Garmin Raises Annual Forecast on Strong Demand for Wearables
Garmin raised its annual results forecast on Wednesday, banking on strong demand for its GPS-enabled fitness devices and smartwatches. Shares of the company jumped about 5.5% in premarket trading. The fitness device maker is benefiting from a strong product lineup, including flagship smartwatches and a range of cycling and indoor training equipment. The raised forecast marks a recovery from the previous quarter when the Swiss company, which has manufacturing operations in Taiwan, the Netherlands, Poland, China, and the U.S., missed profit estimates amid tariff-led uncertainty. Garmin’s high-end wearables cater to professional and niche markets, including defense and sports. The company now expects full-year revenue of about $7.1 billion, compared with $6.80 billion earlier. Garmin, which competes with Apple and Samsung in the wearables market, posted second-quarter revenue of $1.81 billion, beating analysts’ average estimate of $1.70 billion, according to data compiled by LSEG. Revenue from its auto original equipment manufacturer segment rose 16% to $170.1 million from a year ago. The company posted quarterly per share profit of $2.17 on an adjusted basis, beating estimates of $1.89.
