Garmin (GRMN) Boosts Citation Excel XLS+ Performance With G5000
Garmin GRMN is putting in strong efforts to bolster its presence in the aviation industry on the back of its robust key offerings.
The latest upgrade of Cessna Citation Excel XLS+ and XLS Gen2 aircraft with Garmin’s G5000 integrated flight deck is a testament to the aforesaid statement.
The G5000 comes with automatic flight guidance and control systems combined with weather, charts, traffic, terrain and global connectivity options. It offers an intuitive touchscreen interface and bright, high-resolution displays.
Its integrated avionics suite caters to airspace modernization needs and helps reduce operational costs.
G5000, for Citation Excel and Citation XLS, comprises three landscape-oriented flight displays with split-screen capability.
It also delivers a fully integrated Automatic Dependent Surveillance-Broadcast Out solution that is compliant with Federal Aviation Administration and European Aviation Safety Agency rules.
Garmin Ltd. Price and Consensus
Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote
Focus on Citation Excel/XLS
The latest move bodes well for Garmin’s G5000 upgrade program for Citation Excel and XLS, which has upgraded more than 120 aircraft with advanced technologies since 2019.
With G5000, Garmin strives to deliver an enhanced in-flight experience to pilots of Citation Excel/XLS.
In a bid to achieve this, the G5000 enables pilots to view maps, charts, flight plan information, weather, checklists, TAWS, TCAS and Garmin SafeTaxi airport diagrams simultaneously with the help of its three landscape-oriented flight displays and split-screen capability.
The aircraft under review will get the Emergency Descent Mode feature with G5000.
These features are aimed at improving flight performance by reducing the pilot’s workload. This, in turn, is likely to favor Garmin’s G5000 deployment across various aircraft.
Aviation in Focus
We believe the company’s strong endeavors toward bolstering its aviation segment, which offers integrated avionics or flight decks, panel-mounted navigation, traffic, audio, transponder, weather and other products such as portable and wearable solutions, are expected to continue driving its momentum among the various flight owners as well as pilots.
Garmin’s family of autonomous safety solutions — Garmin Autonomi, which comprises Emergency Descent Mode and Electronic Stability and Protection and Autoland — has emerged as a key catalyst for its aviation business.
A robust flight display portfolio has been playing a crucial role in shaping the growth trajectory of Garmin’s aviation business.
The company enjoys solid momentum across OEM and after-market customers on the back of its popular aviation solutions.
The growing endeavors to strengthen the aviation segment will continue to drive Garmin’s top line.
In second-quarter 2023, the underlined segment generated sales of $217.4 million (16.4% of the total sales), increasing 6% on a year-over-year basis.
For 2023, our model estimate for aviation sales stands at $832.1 million, reflecting growth of 5% from 2022’s level.
However, economic uncertainties and foreign exchange headwinds remain concerns for the company.
Zacks Rank & Stocks to Consider
Currently, Garmin carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Asure Software ASUR, Arista Networks ANET and Badger Meter BMI. While Asure Software sports a Zacks Rank #1 (Strong Buy), Arista Networks and Badger Meter each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software shares have gained 4.4% in the year-to-date period. ASUR’s long-term earnings growth rate is currently projected at 27%.
Arista Networks shares have gained 52.5% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%.
Badger Meter shares have gained 42.6% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 15.05%.
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