Garmin (GRMN) to Report Q4 Earnings: What's in the Cards?
Garmin GRMN is scheduled to report its fourth-quarter 2022 results on Feb 22.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $1.29 billion, suggesting a fall of 7.1% from the year-ago fiscal quarter’s reading.
The Zacks Consensus Estimate for earnings is pegged at $1.14 per share, indicating a decline of 26.4% from the year-ago fiscal quarter’s reported figure.
Garmin’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average being 5.15%.
Garmin Ltd. Price and EPS Surprise
Garmin Ltd. price-eps-surprise | Garmin Ltd. Quote
Key Factors to Note
Garmin’s solid momentum in the outdoor segment is likely to have benefited its fourth-quarter performance.
Growing demand for adventure watches and inReach devices and services is expected to have contributed well to the segment in the to-be-reported quarter.
Further, the company’s continuous efforts toward introducing products are expected to have benefited its performance in fourth-quarter 2022.
GRMN’s expansion of Instinct, a family of rugged smartwatches, is likely to have contributed well to the fourth-quarter performance of the outdoor segment. Its introduction of the Instinct Crossover smartwatch, which is powered by RevoDrive analog hand technology, expanded its portfolio of wearables and bolstered outdoor offerings.
Garmin expanded its fitness offerings with the all-in-one indoor smart bike, Tacx NEO Bike Plus. The smart bike offers accurate power, speed and cadence metrics. With Tacx NEO Bike Plus, the company is expected to have gained traction among cyclists and athletes by delivering a realistic outdoor riding experience.
Further, the company introduced the Signature Series 3i 8.8” wake tower marine speakers under its brand Fusion Entertainment. With these marine speakers, Garmin is likely to have gained a footprint in the booming marine audio system market. This, in turn, is expected to get reflected in the fourth-quarter performance of the marine segment.
In addition, the company’s strong efforts toward bolstering its aviation segment on the back of its robust key offerings are likely to have been positive. In the to-be-reported quarter, the European Union Aviation Safety Agency’s approval was received for upgrading the Cessna Citation Excel and XLS aircraft fleet with Garmin’s G5000 integrated flight deck.
Moreover, GRMN’s strong momentum across the OEM and aftermarket categories are expected to have benefited its aviation segment in the quarter under review.
However, softness in the fitness segment due to declining sales of cycling products is likely to have a major concern in the upcoming quarter results.
Further, sluggishness in the marine and auto segments, due to supply-chain constraints and weak demand for consumer auto products, is likely to have remained a headwind.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for GRMN 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. 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 #2 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.
Grid Dynamics GDYN has an Earnings ESP of +4.76% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure.
Adobe ADBE has an Earnings ESP of +0.28% and a Zacks Rank #3 at present.
Adobe is set to report its first-quarter fiscal 2023 results on March 15. The Zacks Consensus Estimate for ADBE’s earnings is pegged at $3.66 per share, suggesting an increase of 8.61% from the prior-year period’s reported figure.
Compass COMP has an Earnings ESP of +3.23% and a Zacks Rank #2 at present.
Compass is scheduled to release its fourth-quarter 2022 results on Feb 28. The Zacks Consensus Estimate for COMP’s loss is pegged at 31 cents per share, narrower than the loss of 43 cents per share reported in the year-ago quarter.
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