Following the company's announcement of stronger-than-expected Q3 earnings and revised expectations for fiscal year 2024, Garmin Ltd. (GRMN, Financial) saw a 23% Wednesday jump to record highs. As investors responded to the company's success and positive outlook, the stock reached a fresh peak of $202.24.
With a 24% YOY increase in quarterly income to $1.59 billion, Garmin exceeded analyst projections by $150 million. Sales of fitness wearables increased by 31% and marine navigation systems by 22% drove the increase. Rising 41%, the company's profit per share exceeded projections by $0.55 to reach $1.99. Operating margin grew by 640 basis points to 27.6%; gross profit margin of Garmin improved 30 basis points to 60%.
CEO Cliff Pemble attributed the success to the company's "highly differentiated and innovative products," which he said are appealing to consumers in all market groups. Inspired by the momentum, Garmin boosted its full-year sales projection to $6.12 billion from $5.95 billion and raised its earnings per share (EPS) estimate to $6.85 from $6.00, so comfortably above consensus forecasts. The corporation also set its operating margin to 24% and its gross margin target to 58.5%. "We are projecting our 2024 based on the results we have thus far and the momentum we are experiencing as we enter the significant holiday selling season," Pemble said.
