GPS-based gadget maker Garmin Ltd reported higher-than-expected quarterly revenue, helped by strong demand for navigational devices used in aircraft and fitness trackers, and forecast full-year revenue above estimates.

Revenue from the company’s fitness business, which accounts for nearly 30 percent of total revenue, rose 13.6 percent in the fourth quarter ended Dec. 26.

Garmin benefited from strong demand for its fitness products that include its Vivo family of wrist bands and smartwatches especially during the holiday season.

However, the business faces stiff competition from Apple Inc’s Apple Watch and fitness devices from companies such as Fitbit Inc.

Revenue in the company’s aviation business, which makes gadgets such as altimeters and transponders, rose 11.6 percent in the quarter.

Automotive revenue, however, fell 21 percent to $268.5 million as its biggest business was hit by a fall in demand for its personal navigation devices such as Nüvi and Zumo.

The company’s net income fell to $132.4 million, or 70 cents per share, from $210.2 million, or $1.09 per share.

It reported pro forma earnings of 74 cents per share, handily beating the average analyst estimate of 48 cents, according to Thomson Reuters I/B/E/S.

Net sales fell 2.7 percent to $781.4 million, still above the average analyst estimate of $760.1 million.

The company forecast 2016 revenue of $2.82 billion. Analysts on average were expecting $2.78 billion.

Up to Tuesday’s close, Garmin’s stock had fallen 37 percent in the past 12 months.

(Reporting by Abhirup Roy and Kshitiz Goliya in Bengaluru; Editing by Don Sebastian)

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

Related Posts

Facebook Comments

Return to Top ▲Return to Top ▲