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) -GPS device maker Garmin on Wednesday raised its adjusted profit forecast for the year, but reported a rise in operating expenses and decline in quarterly revenue from its outdoor and auto units.
Shares of the company fell 10% in premarket trading following the results.
Garmin, which offers GPS devices and technology used for fitness tracking, sports, aviation and marine sector, expects to benefit from the upgrades on its existing devices and new offerings launched during the reported quarter.
Total operating expenses rose 15% to $590 million, which the company linked to higher personnel-related costs affecting research and development as well as selling, general and administrative expense categories.
Revenue from the outdoor segment decreased 5% in the third quarter, primarily due to weakness in auto and adventure watch product categories.
Meanwhile, revenue from its auto original equipment manufacturers segment fell by 2% as certain legacy programs approach their end-of-life.
Adjusted profit of $1.99 per share topped expectations of $1.96, according to data compiled by LSEG.
Garmin now sees annual profit of $8.15 per share, compared with prior projection of $8 per share.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore)
