Zacks Research Has Pessimistic Outlook of Garmin Q2 Earnings

Key Points

• Zacks Research cut its Q2 2027 EPS estimate for Garmin to $2.14 from $2.18 and kept a Hold rating on the stock, signaling a more cautious near-term outlook.
• Garmin’s most recent quarterly results were stronger than expected, with EPS of $2.08 versus the $1.84 consensus and revenue of $1.75 billion, up 14% year over year.
• The company also remains shareholder-friendly, declaring a $1.05 quarterly dividend and an annualized yield of about 1.8%, while institutional investors continue to own the majority of the shares.

Garmin Ltd. (NYSE:GRMN - Free Report) - Research analysts at Zacks Research dropped their Q2 2027 earnings estimates for shares of Garmin in a report issued on Wednesday, May 13th. Zacks Research analyst Team now anticipates that the scientific and technical instruments company will post earnings per share of $2.14 for the quarter, down from their prior forecast of $2.18. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Garmin's current full-year earnings is $9.57 per share. Zacks Research also issued estimates for Garmin's FY2027 earnings at $9.82 EPS, Q1 2028 earnings at $2.02 EPS and FY2028 earnings at $10.93 EPS.

Garmin (NYSE:GRMN - Get Free Report) last posted its earnings results on Wednesday, April 29th. The scientific and technical instruments company reported $2.08 EPS for the quarter, beating analysts' consensus estimates of $1.84 by $0.24. The company had revenue of $1.75 billion for the quarter, compared to the consensus estimate of $1.72 billion. Garmin had a return on equity of 20.07% and a net margin of 23.26%.The company's revenue for the quarter was up 14.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.61 earnings per share. Garmin has set its FY 2026 guidance at 9.350-9.350 EPS.

A number of other research firms also recently issued reports on GRMN. JPMorgan Chase & Co. boosted their price target on shares of Garmin from $265.00 to $285.00 and gave the company a "neutral" rating in a research note on Thursday, April 16th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Garmin in a research report on Thursday, January 22nd. Morgan Stanley set a $249.00 target price on Garmin in a research report on Thursday, April 30th. Tigress Financial upped their price target on Garmin from $310.00 to $320.00 and gave the stock a "strong-buy" rating in a research note on Friday, February 20th. Finally, Barclays lowered their price target on Garmin from $240.00 to $238.00 and set an "equal weight" rating for the company in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $268.40.

Garmin Trading Up 1.1%

Shares of GRMN opened at $234.51 on Friday. The company's 50-day moving average price is $245.33 and its 200 day moving average price is $222.42. Garmin has a 12-month low of $186.67 and a 12-month high of $273.32. The firm has a market cap of $45.23 billion, a P/E ratio of 26.14, a price-to-earnings-growth ratio of 2.73 and a beta of 0.94.

Garmin Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 26th. Shareholders of record on Friday, March 12th will be given a $1.05 dividend. The ex-dividend date of this dividend is Friday, March 12th. This represents a $4.20 dividend on an annualized basis and a yield of 1.8%. Garmin's dividend payout ratio (DPR) is currently 40.13%.

Insider Buying and Selling

In other news, COO Patrick Desbois sold 6,694 shares of the business's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $251.65, for a total transaction of $1,684,545.10. Following the completion of the transaction, the chief operating officer directly owned 58,540 shares of the company's stock, valued at approximately $14,731,591. The trade was a 10.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Clifton A. Pemble sold 19,914 shares of the company's stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $251.58, for a total transaction of $5,009,964.12. Following the sale, the chief executive officer owned 124,075 shares in the company, valued at $31,214,788.50. The trade was a 13.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 40,246 shares of company stock worth $10,110,041 over the last ninety days. Company insiders own 15.38% of the company's stock.

Hedge Funds Weigh In On Garmin

Institutional investors and hedge funds have recently modified their holdings of the company. Norges Bank acquired a new stake in Garmin in the fourth quarter valued at $395,234,000. Alliancebernstein L.P. boosted its position in shares of Garmin by 649.2% during the 3rd quarter. Alliancebernstein L.P. now owns 1,256,668 shares of the scientific and technical instruments company's stock worth $309,417,000 after acquiring an additional 1,088,938 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of Garmin in the 4th quarter valued at about $214,382,000. Man Group plc raised its position in shares of Garmin by 232.0% during the 4th quarter. Man Group plc now owns 812,390 shares of the scientific and technical instruments company's stock worth $164,793,000 after acquiring an additional 567,711 shares in the last quarter. Finally, Vanguard Group Inc. lifted its stake in Garmin by 2.5% during the third quarter. Vanguard Group Inc. now owns 20,197,564 shares of the scientific and technical instruments company's stock worth $4,973,044,000 after purchasing an additional 499,235 shares during the last quarter. Institutional investors and hedge funds own 81.60% of the company's stock.

Garmin Company Profile

Garmin Ltd. is a technology company best known for designing and manufacturing navigation, communication and information devices that leverage global positioning system (GPS) technology. The company serves a diverse set of markets including consumer fitness and wearables, automotive navigation, aviation avionics, marine electronics and outdoor handheld devices. Garmin's products combine hardware, mapping and software services to deliver location-aware solutions for personal, recreational and professional uses.

Garmin's product lineup includes wearable fitness and multisport watches (Forerunner, Fenix, Venu), cycling computers and accessories (Edge, Varia), handheld and handheld-mounted GPS devices for outdoor activities, automotive and portable navigation units, marine chartplotters and fishfinders, and certified avionics for fixed- and rotary-wing aircraft.

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