Garmin (NYSE:GRMN) Issues 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) issued an update on its FY 2025 earnings guidance on Wednesday morning. 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.

Garmin Price Performance

Shares of GRMN stock traded up $0.03 on Friday, hitting $218.79. The stock had a trading volume of 1,324,517 shares, compared to its average volume of 906,307. The business has a 50 day moving average of $212.65 and a 200 day moving average of $208.95. The stock has a market cap of $42.11 billion, a price-to-earnings ratio of 26.98, a price-to-earnings-growth ratio of 2.43 and a beta of 0.99. Garmin has a 12-month low of $160.71 and a 12-month high of $246.50.

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

Garmin Dividend Announcement

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 given a dividend of $0.90 per share. This represents a $3.60 dividend on an annualized basis and a yield of 1.6%. Garmin's dividend payout ratio is presently 44.39%.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. raised their price objective on shares of Garmin from $215.00 to $250.00 and gave the company a "neutral" rating in a research report on Thursday, July 17th. 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 report on Thursday. Finally, Barclays restated an "underweight" rating and issued a $167.00 price objective (up from $152.00) on shares of Garmin in a research report on Wednesday. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $222.00.

Insider Activity at Garmin

In other Garmin news, CFO Douglas G. Boessen sold 1,859 shares of Garmin stock in a transaction that occurred on Thursday, July 3rd. The shares were sold at an average price of $215.00, for a total transaction of $399,685.00. Following the completion of the sale, the chief financial officer directly owned 29,146 shares in the company, valued at $6,266,390. The trade was a 6.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Clifton A. Pemble sold 7,899 shares of Garmin stock in a transaction that occurred 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 owned 141,626 shares of the company's stock, valued at approximately $28,785,484.50. The trade was a 5.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 19.54% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Brighton Jones LLC boosted its stake in Garmin by 31.3% in the 4th quarter. Brighton Jones LLC now owns 1,943 shares of the scientific and technical instruments company's stock worth $401,000 after purchasing an additional 463 shares in the last quarter. NewEdge Advisors LLC raised its position 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 worth $1,278,000 after buying an additional 345 shares during the last quarter. Focus Partners Wealth raised its position in Garmin by 51.1% in the 1st quarter. Focus Partners Wealth now owns 6,811 shares of the scientific and technical instruments company's stock worth $1,479,000 after buying an additional 2,304 shares during the last quarter. Finally, Woodline Partners LP raised its position in Garmin by 40.6% in the 1st quarter. Woodline Partners LP now owns 13,017 shares of the scientific and technical instruments company's stock worth $2,826,000 after buying an additional 3,757 shares during the last quarter. 81.60% of the stock is owned by hedge funds and other institutional investors.

Garmin Company Profile

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.