Garmin forecasts strong 2024 revenue, beats quarterly estimates

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 device maker Garmin beat fourth-quarter earnings expectations and forecast full-year revenue above estimates on Wednesday, betting on strong growth in its auto and fitness businesses.

Shares of the company rose 9.7% to $134.67.

New product launches, such as the vívoactive 5 GPS smartwatch, and collaborations with popular brands have helped the Swiss company drum up demand for its smartwatches and navigation systems used in vehicles.

Analysts said Garmin's diverse range of offerings that cater to industries from marine to aviation have also cushioned results in an uncertain economy.

Garmin expects 2024 revenue of about $5.75 billion, above analysts' estimates of $5.56 billion, according to LSEG data.

The company's auto original equipment manufacturers segment recorded a 54% year-over-year rise in revenue to $127.03 million, bolstered by increased shipments of its domain controllers to BMW.

Garmin announced last month it will provide infotainment solutions to Yamaha Motor Co for selected models.

Its fitness segment, which offers wearables such as smartwatches and faces competition from Apple, saw a 22% rise for the quarter ended Dec. 30 to $412.08 million.

Last week, the company's board approved a share repurchase program of up to $300 million.

Garmin reported revenue of $1.48 billion for the fourth quarter, compared with analysts' estimates of $1.42 billion. Adjusted profit of $1.72 per share also beat expectations.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Krishna Chandra Eluri and Devika Syamnath)

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