Garmin’s stock slipped on Thursday following the company’s third quarter earnings report that indicated mixed results across its multiple product areas compared to the previous quarter.
According the the report, sales jumped 12 percent but lagged behind the 20 percent revenue boost the company saw in the previous quarter. The third quarter surge resulted in a year-over-year increase of $1.77 billion on $457 million operating income, the highest in Garmin’s history.
Overall sales beat analyst estimates of $1.76 billion, prompting the company to push up its full-year earnings forecast.
“We achieved another quarter of strong financial results with growth in both consolidated revenue and operating income, and we experienced strong double-digit revenue growth in three business segments reflecting the strength of our unique, diversified business model,” President and CEO Cliff Pemble said in a statement. “Looking ahead, we are well positioned for the holiday selling season with a strong lineup of innovative products.”
But shares fell 10 percent in premarket trading following the news. Still, the company said that upgrades to older devices will reflect in earnings in the following quarter.
Garmin has a wide product range that is heavily focused on GPS devices that are wildly popular with runners. The company also has significant inroads in aviation, trackers for sports like golf and cycling and it manufactures products for the marine sector.
Across those product categories, the figures tell the true tale of its third quarter as fitness trackers saw a 30 percent increase in sales at $601 million with several recent product launches.
Marine also saw an uptick in sales with a 20 percent surge at $267 million while aviation rose 18 percent to $240 million.
But the outdoor segment was down 5 percent to $498 million even with never product launches earlier in the year and the automobile division was down 2 percent at $165 million.
Garmin now predicts to earn $8.15 a share on $7.1 billion in sales for 2025, a slight variation on analyst outlooks of $8.16 a share on sales of $7.17 billion but unchanged from its prior guidance.
