(Reuters) – Navigation equipment maker Garmin beat market estimates for second-quarter revenue and profit on Wednesday, thanks to strong growth in its auto and fitness businesses.
The company has been leaning on its diversified presence that spans smartwatches, GPS devices and technology used in vehicles to help ride out weaker spending by consumers and corporates in an uncertain economy.
Garmin’s revenue grew 6% to $1.32 billion in the quarter ended July 1, compared with analysts’ average estimate of $1.26 billion, according to Refinitiv. Garmin increased its full-year revenue forecast to $5.05 billion from $5 billion earlier.
“Our recent wearable launches have been well received and we expect continued revenue growth throughout the remainder of the year,” said CEO Cliff Pemble.
The wearable device maker which faces stiff competition from Apple’s smartwatches, launched the Edge 540 and Edge 840 GPS-based cycling computers during the reported quarter with enhanced battery life, solar charging options and mapping upgrades.
Sales at its auto original equipment manufacturers jumped 77%, while sales at its fitness unit increased 23%.
The company’s marine and outdoor businesses were a drag with sales falling 11% and 3%, respectively.
Excluding items, Garmin earned $1.45 per share, above estimates of $1.41 per share.
The company’s shares have risen 15.2% so far in 2023, after declining by nearly a third last year.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shailesh Kuber)
