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) - Swiss navigation device maker Garmin forecast full-year results above Wall Street estimates on Wednesday, banking on continued momentum in its outdoor and auto OEM segments.
Its U.S.-listed shares were up 8.9% in early trading.
Garmin makes wearables designed for a niche market of professionals and specializes in GPS-enabled products for defense and recreational needs, charging a premium for its high-end, specialized products.
Its strong and specialized business advantage has helped it fend off competition from smartphone makers like Apple and Samsung, which have launched wearables in the high-end market — that Garmin currently dominates — with the launch of the Apple Watch Ultra and Galaxy Watch Ultra wearables, respectively.
For the full-year 2025, Garmin expects revenue of approximately $6.80 billion, above analysts' estimate of $6.72 billion, according to data compiled by LSEG.
On a pro forma basis, it expects to report a full-year adjusted profit of $7.80 per share, beating an estimate of $7.74 per share.
Garmin's outdoor segment, its largest by revenue, saw strong demand for its adventure watches in the holiday-season quarter, reporting quarterly revenues of $629.4 million, trouncing an estimate of $585.6 million.
Revenue from its auto OEM segment jumped 30% to $165.8 million, led by increased shipments of domain controllers to automakers such as BMW.
For the quarter ended December 31, Garmin reported revenues of $1.82 billion, above analysts' estimate of $1.7 billion, according to data compiled by LSEG.
On a pro forma basis, its profit was $2.41 per share, while analysts expected a profit of $2.03 per share.
(Reporting by Rishi Kant in Bengaluru; Editing by Pooja Desai)
