Shares of Garmin (NASDAQ:GRMN) jumped 17% on Wednesday after the GPS expertise firm introduced better-than-expected fourth-quarter 2018 outcomes and upbeat ahead steering.
Garmin’s quarterly income climbed four% yr over yr to $932 million, translating right into a 26% improve in professional forma earnings to $193.6 million, or $1.02 per share. Analysts, on common, have been solely anticipating earnings of $zero.80 per share on income of $891.three million.
Within Garmin’s high line, a 28% decline in automotive phase income (to $147.6 million) was greater than offset by a mixed 13% improve from its aviation, marine, outside, and health merchandise. In specific, outside product income climbed 25% due to “significant contributions” from the corporate’s journey watch strains.
CEO Cliff Pemble referred to as it a “remarkable year of revenue and operating income growth,” and added: “Entering 2019, we see many opportunities ahead and believe that we are well positioned to seize these opportunities with a strong lineup of products across all of our segments.”
For full-year 2019, Garmin expects income of $three.5 billion, up from $three.35 billion in 2018 and nicely above consensus estimates for $three.43 billion, assuming automotive declines will solely partially offset progress from its remaining segments. That ought to translate into 2019 earnings per share of $three.70, up barely from professional forma earnings of $three.69 per share in 2018 however once more nicely above the $three.52 per share Wall Street was modeling.
In the tip, whereas Garmin’s consolidated progress is not precisely dropping any jaws, this was an easy quarterly beat adopted by encouraging steering relative to expectations.