FILE PHOTO: A large replica of a fitness smartwatch from Garmin is on display the international consumer technology fair IFA in Berlin, Germany September 2, 2022. REUTERS/Lisi Niesner/File Photo
(Reuters) - Navigation equipment maker Garmin Ltd raised its annual sales forecast ahead of the crucial holiday shopping period as strength in its auto and fitness businesses helped it beat third-quarter revenue estimates.
The company has been leaning on its diverse product portfolio that spans smartwatches, GPS devices and technology used in vehicles to ride out weaker spending by consumers and corporates in an uncertain economy.
Garmin's revenue rose 12% to $1.28 billion for the three months ended Sept. 30, compared with analysts' estimate of $1.21 billion, according to LSEG.
The company, which closed the acquisition of JL Audio in September, said it now expects revenue of $5.15 billion and adjusted earnings of $5.25 per share for the full year.
The company had previously forecast revenue of about $5.05 billion and adjusted earnings of $5.15 per share for the year.
"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," said CEO Cliff Pemble.
Sales at Garmin's auto original equipment manufacturers segment increased by 59% to $110.2 million in the third quarter, driven by increased shipments of domain controllers to BMW.
Its fitness business grew by 26% to $353 million, led by a strong demand for wearables.
All of Garmin's segments registered growth in the quarter, except its marine business, which posted a 7% decrease in sales.
Excluding items, Garmin earned $1.41 per share, topping expectations of $1.29.
(This story has been corrected to say that the company raised forecast for the full year, not holiday shopping quarter, in the headline and paragraph 1, and adds period in paragraph 4)
(Reporting by Juby Babu in Bengaluru; Editing by Saumyadeb Chakrabarty)
