Garmin Ltd. (NASDAQ:GRMN) posted a 6.1% increase in quarterly profit that beat analysts’ expectations with the maker of GPS-based devices enjoying strong sales of its outdoor products.
Net income attributable to Garmin rose to US$171mln, or 91 cents per share, in the second quarter to 1 July, from US$161.1mln, or 85 cents per shares, in the previous year.
On a pro-forma basis, earnings per share came to 88 cents per share, exceeding market forecasts of 81 cents.
Revenue rose to US$816.9mln from US$811.6mln, ahead of projections of US$807.7mln.
Sales in the outdoor business, which includes products such as pet trackers and the Fenix and Approach series of sports watches, jumped 46.3% to a record US$194.8mln.
The growth in outdoor sales offset a 15.2% decline in its auto products arm – the company’s biggest division – and a 15% drop in its fitness device business.
The automotive business sells nativigation products for vehicles while the fitness division includes tracking devices for logging sports activities such as running, cycling and swimming.
Garmin raised its annual revenue forecast to US$3.04bn from US$3.02bn.
Shares gained 6.32% to US$49.99 in US pre-market trading.