Garmin Ltd shares jumped 11% to $113.44 in late-morning trading on Wednesday after the navigation equipment maker reported third-quarter 2023 financial results that exceeded expectations on both the top and bottom lines as the company also raised its annual revenue forecast.
For 3Q, Garmin saw a 12% year-over-year increase in revenue to $1.28 billion, surpassing the analyst consensus forecast of $1.21 billion according to LSEG, on strength in its auto and fitness businesses.
The company noted that revenue from its fitness segment grew 26% in the quarter with growth across all categories led by strong demand for wearables.
Its adjusted earnings per share (EPS) for the period of $1.41 also topped expectations of $1.29.
Going forward, the company said it now expects full year 2023 revenue of $5.15 billion and adjusted EPS of $5.25, an improvement from its previous guidance of $5.05 billion in revenue and adjusted EPS of $5.15.
"Looking ahead, we are well positioned for the holiday selling season with a strong lineup of innovative products which gives us confidence to raise our outlook for the remainder of the year," Garmin CEO Cliff Pemble said in a statement.
Shares of Garmin have gained 21% year to date.
Contact Sean at sean@proactiveinvestors.com