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Garmin (GRMN) to Report Q2 Earnings: What's in the Cards?

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Garmin GRMN is scheduled to report second-quarter 2022 results on Jul 27.

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $1.36 billion, indicating an improvement of 2.4% from the year-ago quarter’s reported value.

The consensus mark for earnings per share is pegged at $1.42, suggesting a decline of 15.5% from the prior-year quarter’s reported figure. The consensus mark has been unchanged over the past 30 days.

Garmin’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same on one occasion, the average surprise being 13.5%.

Garmin Ltd. Price and EPS Surprise

Garmin Ltd. Price and EPS Surprise
Garmin Ltd. Price and EPS Surprise

Garmin Ltd. price-eps-surprise | Garmin Ltd. Quote

Key Factors to Note

Garmin’s continuous efforts toward introducing products are expected to have benefited its performance in second-quarter 2022.

Increasing demand for adventure watches is likely to have continued benefiting GRMN’s outdoor segment. During the quarter, GRMN introduced the tactix 7 Series of smartwatches with navigation, training and performance tracking, and health and wellness monitoring features. This is likely to have been a positive.

Growing adoption of marine products is likely to have contributed well to the marine segment in the second quarter. During the quarter, GRMN launched the ECHOMAP UHD2 chartplotter series with high-contrast scanning sonar power, mapping and fish-finding features. This is likely to have driven segmental revenues in the quarter under review.

Contributions from consumer categories and new OEM programs are likely to have benefited the automotive segment in the quarter under discussion. During the quarter, GRMN introduced the dezl OTR series of trucking navigators to provide an enhanced driving experience to truck drivers. This might have aided its segmental revenues.

Rising contributions from OEM categories are anticipated to have continued supporting the aviation segment’s performance in theto-be-reported quarter.

Strong demand for GRMN’s wearables is likely to have continued aiding its fitness segment’s performance in the second quarter. During the quarter, Garmin introduced the Forerunner 955 Solar smartwatch, featuring solar charging, longer battery life, multi-satellite system tracking, and health and wellness tracking. This might have remained a tailwind.

However, Garmin has been witnessing weak demand for cycling products as the market is resuming normalcy to pre-pandemic levels. This might have affected the fitness segment in the underlined quarter.

Also, supply-chain challenges induced by the coronavirus pandemic and the impacts of the ongoing Russia-Ukraine war are expected to get reflected in the upcoming quarterly results.

Increasing expenses are likely to have hurt Garmin’s profitability in the second quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Garmin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Garmin has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Aspen Technology AZPN has an Earnings ESP of +1.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aspen Technology is set to report fourth-quarter fiscal 2022 results on Aug 8. The Zacks Consensus Estimate for ASPN’s earnings is pegged at $2.15 per share, which suggests an increase of 40.5% from the prior-year fiscal period’s reported figure.

Keysight Technologies KEYS has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.

Advanced Micro Devices AMD has an Earnings ESP of +2.14% and a Zacks Rank of 3 at present.

Advanced Micro Devices is scheduled to release second-quarter 2022 results on Aug 2. The Zacks Consensus Estimate for AMD’s earnings is pegged at $1.03 per share, suggesting an increase of 63.5% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
 
Garmin Ltd. (GRMN) : Free Stock Analysis Report
 
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Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
 
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