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Garmin's (GRMN) New GFC 500 Certification to Aid Aviation Unit

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Garmin Ltd. (GRMN - Free Report) is leaving no stone unturned to bolster the aviation business on the back of its robust autonomous flight solutions.

The company’s GFC 500 digital autopilot received Supplemental Type Certification (STC) from the Federal Aviation Administration (FAA) for use in the Cessna 177/177A Cardinal and the Beechcraft T34A/T34B Series. This STC also includes twin-engine aircrafts - Piper Seneca PA-34-200T and PA-34-220T II-V.

The latest approval is a testament to the company’s focus on strengthening its aviation portfolio.

The GFC 500 offers robust autopilot performance, strong reliability and advanced safety benefits. It features superior in-flight characteristics and self-monitoring capabilities. The autopilot comes with minimal maintenance needs.

It also features altitude pre-select, VNAV2 and altitude hold, vertical speed and heading modes.

We note that the latest certification highlights the reliability of Garmin’s aviation technology.

Garmin Ltd. Price and Consensus

 

Garmin Ltd. Price and Consensus

Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote

 

Growing Certifications

The company’s aviation business is likely to benefit from the above-mentioned certification.

Apart from the latest certification, the company’s GFC 600 digital autopilot recently received STC from the FAA for use in Beechcraft King Air F90 aircraft models.

The GFC 600 Autopilot also received STC from the FAA for use in the Piper PA-31-350 Navajo Chieftain aircraft model.

Its GI 275 electronic flight instrument also received STC from the FAA for use in Bell 407 and Robinson R66 helicopters.

Aviation in Focus

We believe that the growing certifications will continue to drive the aviation segment’s top line.

Garmin’s family of autonomous safety solutions — Garmin Autonomi (comprising Emergency Descent Mode and Electronic Stability and Protection) and Autoland — has emerged as a key catalyst.

A robust flight display and flight deck portfolio has been playing a crucial role in shaping the growth trajectory of Garmin’s aviation business.

The company enjoys solid momentum across OEM and after-market customers on the back of its popular aviation solutions.

The growing endeavors to strengthen the aviation segment will continue to drive Garmin’s top line.

In second-quarter 2023, the underlined segment generated sales of $217.4 million (16.4% of the total sales), increasing 6% on a year-over-year basis.

For 2023, our model estimate for aviation sales stands at $832.1 million, reflecting growth of 5% from 2022’s level.

However, economic uncertainties and foreign exchange headwinds remain concerns for the company.

Zacks Rank & Stocks to Consider

Currently, Garmin carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader technology sector are Asure Software (ASUR - Free Report) , Arista Networks (ANET - Free Report) and Adobe (ADBE - Free Report) . While Asure Software sports a Zacks Rank #1 (Strong Buy), Arista Networks and Adobe each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Asure Software shares have lost 4.5% in the year-to-date period. ASUR’s long-term earnings growth rate is currently projected at 27%.

Arista Networks shares have gained 53.3% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%.

Adobe shares have gained 58.1% in the year-to-date period. ADBE’s long-term earnings growth rate is currently projected at 13.27%.


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