Garmin (NYSE:GRMN) Updates FY 2025 Earnings Guidance

Key Points

• Garmin has issued FY 2025 earnings guidance, projecting EPS of 8.000, outpacing the consensus estimate of 7.926, and revenue guidance of $7.1 billion, compared to the consensus of $6.9 billion.
• Shares of Garmin opened at $239.28, with a market capitalization of $46.07 billion and a PE ratio of 31.48.
• Recent analyst ratings show mixed sentiment, with targets ranging from $152.00 to $250.00, resulting in a consensus rating of "Hold."

Garmin (NYSE:GRMN - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 8.000-8.000 for the period, compared to the consensus estimate of 7.926. The company issued revenue guidance of $7.1 billion-$7.1 billion, compared to the consensus revenue estimate of $6.9 billion.

Wall Street Analyst Weigh In

GRMN has been the topic of a number of recent research reports. Morgan Stanley raised their price objective on shares of Garmin from $172.00 to $186.00 and gave the company an "underweight" rating in a research note on Thursday. JPMorgan Chase & Co. increased their price target on Garmin from $215.00 to $250.00 and gave the company a "neutral" rating in a research note on Thursday, July 17th. Finally, Barclays reaffirmed an "underweight" rating and set a $167.00 price objective (up from $152.00) on shares of Garmin in a research note on Wednesday. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $222.00.

Garmin Stock Up 0.0%

Garmin stock traded up $0.03 during midday trading on Friday, hitting $218.79. 1,324,517 shares of the stock were exchanged, compared to its average volume of 840,080. The stock has a market capitalization of $42.11 billion, a PE ratio of 26.98, a P/E/G ratio of 2.41 and a beta of 0.99. The company has a fifty day simple moving average of $212.65 and a two-hundred day simple moving average of $209.02. Garmin has a 52 week low of $160.71 and a 52 week high of $246.50.

Garmin (NYSE:GRMN - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The scientific and technical instruments company reported $2.17 earnings per share for the quarter, topping analysts' consensus estimates of $1.90 by $0.27. Garmin had a net margin of 23.21% and a return on equity of 20.00%. The company had revenue of $1.81 billion for the quarter, compared to analysts' expectations of $1.68 billion. During the same period last year, the firm posted $1.58 earnings per share. The business's quarterly revenue was up 20.4% compared to the same quarter last year. As a group, equities research analysts anticipate that Garmin will post 7.8 EPS for the current fiscal year.

Garmin Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 12th will be paid a $0.90 dividend. This represents a $3.60 dividend on an annualized basis and a yield of 1.6%. Garmin's payout ratio is 47.37%.

Insider Activity

In related news, CEO Clifton A. Pemble sold 7,899 shares of the firm's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $203.25, for a total transaction of $1,605,471.75. Following the sale, the chief executive officer directly owned 141,626 shares in the company, valued at $28,785,484.50. This trade represents a 5.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Douglas G. Boessen sold 1,859 shares of the company's stock in a transaction on Thursday, July 3rd. The stock was sold at an average price of $215.00, for a total transaction of $399,685.00. Following the completion of the transaction, the chief financial officer directly owned 29,146 shares of the company's stock, valued at approximately $6,266,390. The trade was a 6.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. 15.38% of the stock is owned by corporate insiders.

Institutional Trading of Garmin

Several hedge funds and other institutional investors have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in shares of Garmin by 31.3% in the fourth quarter. Brighton Jones LLC now owns 1,943 shares of the scientific and technical instruments company's stock valued at $401,000 after purchasing an additional 463 shares during the last quarter. Woodline Partners LP boosted its holdings in Garmin by 40.6% during the first quarter. Woodline Partners LP now owns 13,017 shares of the scientific and technical instruments company's stock worth $2,826,000 after purchasing an additional 3,757 shares during the last quarter. Focus Partners Wealth grew its position in Garmin by 51.1% in the first quarter. Focus Partners Wealth now owns 6,811 shares of the scientific and technical instruments company's stock valued at $1,479,000 after purchasing an additional 2,304 shares in the last quarter. Finally, NewEdge Advisors LLC increased its stake in Garmin by 6.2% in the 1st quarter. NewEdge Advisors LLC now owns 5,885 shares of the scientific and technical instruments company's stock valued at $1,278,000 after buying an additional 345 shares during the last quarter. Institutional investors and hedge funds own 81.60% of the company's stock.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform.