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Garmin (GRMN) to Report Q1 Earnings: What's in the Cards?
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Garmin (GRMN - Free Report) is scheduled to report first-quarter 2022 results on Apr 27.
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $1.14 billion, indicating an improvement of 5.9% from the year-ago reported value.
The consensus mark for earnings per share is pegged at $1.15, suggesting a decline of 2.5% from the prior-year reported figure. Further, the metric has moved upward by 4.5% in the past seven days.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 22.9%.
Garmin’s continuous efforts toward introducing new products and strong market trends are expected to have benefited its performance in first-quarter 2022.
Strong demand for the company’s wearables is likely to have continued aiding the fitness segment’s performance in the to-be-reported quarter. Further, GRMN introduced the Tacx NEO Motion Plates in the underlined quarter to provide multidirectional movement to trainers. This might have remained a positive. Yet, Garmin has been witnessing weak demand for cycling products as the market is normalizing and moving to the pre-pandemic level. This might have remained a headwind.
Apart from this, the growing popularity of adventure watches has been benefiting the company’s outdoor segment. This is expected to have remained a tailwind in the quarter under review. During the quarter, GRMN introduced a compact satellite communication device named inReach Mini 2, featuring two-way communication and SOS capabilities to help users stay connected with family and friends. This is likely to have been a positive.
In addition, growing contributions from OEM categories are anticipated to have continued supporting the aviation segment’s performance in the first quarter. Yet, component supply constraints might have affected aftermarket sales. This is likely to have been an overhang.
Nonetheless, the growing demand for marine products is likely to have contributed well to the marine segment in the first quarter. During the quarter, GRMN launched the LiveScope Plus System, which offers sharper resolution, reduced noise and clearest images for recreational fishing. This is likely to have driven segmental revenues in the quarter under review.
Further, contributions from consumer categories and new OEM programs are likely to have benefited the automotive segment in the quarter under discussion. Also, Garmin’s growing efforts to introduce new specialty categories might have aided the segmental revenues.
Yet, increasing research & development and selling, general & administrative expenses are likely to have affected the quarterly performance. Further, the impact of higher freight costs is expected to get reflected in first-quarter results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Garmin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Garmin has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell), at present.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.
HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.
HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.
Image: Bigstock
Garmin (GRMN) to Report Q1 Earnings: What's in the Cards?
Garmin (GRMN - Free Report) is scheduled to report first-quarter 2022 results on Apr 27.
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $1.14 billion, indicating an improvement of 5.9% from the year-ago reported value.
The consensus mark for earnings per share is pegged at $1.15, suggesting a decline of 2.5% from the prior-year reported figure. Further, the metric has moved upward by 4.5% in the past seven days.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 22.9%.
Garmin Ltd. Price and EPS Surprise
Garmin Ltd. price-eps-surprise | Garmin Ltd. Quote
Key Factors to Note
Garmin’s continuous efforts toward introducing new products and strong market trends are expected to have benefited its performance in first-quarter 2022.
Strong demand for the company’s wearables is likely to have continued aiding the fitness segment’s performance in the to-be-reported quarter. Further, GRMN introduced the Tacx NEO Motion Plates in the underlined quarter to provide multidirectional movement to trainers. This might have remained a positive. Yet, Garmin has been witnessing weak demand for cycling products as the market is normalizing and moving to the pre-pandemic level. This might have remained a headwind.
Apart from this, the growing popularity of adventure watches has been benefiting the company’s outdoor segment. This is expected to have remained a tailwind in the quarter under review. During the quarter, GRMN introduced a compact satellite communication device named inReach Mini 2, featuring two-way communication and SOS capabilities to help users stay connected with family and friends. This is likely to have been a positive.
In addition, growing contributions from OEM categories are anticipated to have continued supporting the aviation segment’s performance in the first quarter. Yet, component supply constraints might have affected aftermarket sales. This is likely to have been an overhang.
Nonetheless, the growing demand for marine products is likely to have contributed well to the marine segment in the first quarter. During the quarter, GRMN launched the LiveScope Plus System, which offers sharper resolution, reduced noise and clearest images for recreational fishing. This is likely to have driven segmental revenues in the quarter under review.
Further, contributions from consumer categories and new OEM programs are likely to have benefited the automotive segment in the quarter under discussion. Also, Garmin’s growing efforts to introduce new specialty categories might have aided the segmental revenues.
Yet, increasing research & development and selling, general & administrative expenses are likely to have affected the quarterly performance. Further, the impact of higher freight costs is expected to get reflected in first-quarter results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Garmin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Garmin has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell), at present.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.
HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.
HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.