US: Garmin took everyone by surprise as the company announced a 17% hike in its fourth quarter results. The navigation technology company earned 74 cents a share on sales of $781 million. This comfortably surpassed the Zacks Consensus Estimate of 47 cents on sales of $760 million.
Garmin’s fourth-quarter revenues of $781.4 million were up 15% sequentially but down 2.7% year over year. It also missed the Zacks Consensus Estimate of $760.0 million. Revenues, in particular, were helped by higher demand for navigational tools used in fitness and aviation devices that includes its Vivo family of wrist brands and smartwatches.
Garmin reported robust fourth-quarter results with both earnings and revenues surpassing the Zacks Consensus Estimate. The company’s expanding product line in each segment and strong underlying business trends are the positives. Its continued investments in R&D and advertising are expected to result in new revenue opportunities and long-term growth. However, the macroeconomic challenges faced in 2015 remain part of the operating environment.