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Garmin's (GRMN) Q4 Earnings to Gain From Portfolio Strength

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Garmin Ltd. (GRMN - Free Report) is slated to report fourth-quarter 2017 results before the bell on Feb 21.

The surprise history has been good in Garmin’s case. Last quarter, the company delivered a positive earnings surprise of 13.6%. The company surpassed estimates in each of the trailing four quarters, with an average beat of 15.9%.

We observe that shares of Garmin, a leading provider of navigation, communication and information devices, have gained 28.3% in the past 12 months, outperforming the industry’s 21.7% rally.

 

 

Here are the Expectations:

Marine

This segment is likely to improve year over year in the to-be-reported quarter driven by positive contributions from acquisition of Active Corporation. The Zacks Consensus Estimate for this segment’s revenues is pegged at $75 million. In the third quarter, Garmin’s Marine segment increased 28.8% from the prior-year quarter.

Aviation

It is expected to perform well this time around as Garmin continues to see strong sales of aftermarket products and positive contributions from OEM products. The Zacks Consensus Estimate for this segment’s revenues is pegged at $128 million. The Aviation segment’s third-quarter revenues increased 16% year over year.

Outdoor

Carrying on the momentum of the third quarter, this segment is expected to record further improvement in the quarter and in the remainder of the year. Growth will be driven by robust demand for wearables. The Zacks Consensus Estimate for Outdoor segment revenues is pegged at $210 million.

Fitness

The Fitness segment decreased 11.6% year over year and the decline is expected to continue in the to-be-reported quarter as well due to persistent low volumes in basic activity trackers.The Zacks Consensus Estimate for Fitness segment revenues is pegged at $266 million.

Auto/Mobile

This segment has been declining for the past several quarters and the trend will continue given secular decline in personal navigation device (PND) market that offset, at times, almost entirely, the growth in other segments. The Zacks Consensus Estimate for this segment’s revenues stands at $195 million.

What Our Model States

Our proven model shows that Garmin is likely to beat earnings due to the favorable combination of a Zacks Rank #3 (Hold) and +0.17% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.

Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.

Garmin Ltd. Price and EPS Surprise

 

Garmin Ltd. Price and EPS Surprise | Garmin Ltd. Quote

 

Other Stocks to Consider

Here are some other stocks that you may want to consider as our model shows that these have the right combination of elements to deliver a positive earnings surprise:

Applied Materials, Inc. (AMAT - Free Report) , with an Earnings ESP of +2.06% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Newfield Exploration Company , with an Earnings ESP of +1.64% and a Zacks Rank #3.

Advanced Micro Devices, Inc. (AMD - Free Report) , with an Earnings ESP of +8.72% and a Zacks Rank #3.

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