Garmin Ltd (NYSE:GRMN) shares rallied over 20% on Wednesday after it hiked guidance on better-than-expected profit and revenue during the third quarter.
Net sales climbed by 24% to $1.59 billion in the three months to September, Garmin reported, exceeding LSEG-compiled consensus estimates for $1.44 billion.
This was aided by a 31% increase in fitness product revenue and 21% jump for outdoor goods to $463.89 million and $526.55 million respectively, while sales in its aviation, marine and automotive segments also climbed.
A 41% increase in profit to $1.99 per share was also ahead of expectations for $1.44, as gross margins widened from 57% to 60%.
“We delivered another quarter of impressive financial results as our highly differentiated and innovative products resonate with customers,” chief executive Cliff Pemble said.
Full-year revenue guidance was lifted from $5.95 billion to $6.12 billion on the back of the results, with earnings per share also expected to be higher at $6.85, against $6.00 previously.
Pemble noted the upgraded guidance came on momentum already seen ahead of “the important holiday selling season”.
Shares climbed 20.9% to $201.11 on Wednesday.