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Garmin (GRMN) to Report Q4 Earnings: What's in the Cards?

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Garmin (GRMN - Free Report) is scheduled to report its fourth-quarter 2023 results on Feb 21.

For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $1.4 billion, suggesting an increase of 7.5% from the year-ago quarter.

The consensus estimate for earnings is pegged at $1.40 per share, indicating a rise of 3.7% from the year-ago quarter’s reported figure. The figure has increased by a penny in the past seven days.

Garmin’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.8%.

Let’s see how things have shaped up for the upcoming announcement.

Garmin Ltd. Price and EPS Surprise

Garmin Ltd. Price and EPS Surprise

Garmin Ltd. price-eps-surprise | Garmin Ltd. Quote

Key Factors to Note

Garmin’s expanding portfolio is expected to have benefited its top-line growth in the fourth quarter of 2023.

In the fitness segment, strong demand for wearables is expected to have aided its revenue growth in the quarter under review.

The Zacks Consensus Estimate for the Fitness segment is pegged at $400.3 million, indicating 19% year-over-year growth.

The company’s increasing efforts toward bolstering its Outdoor segment on the back of its robust key offerings are expected to have positively impacted its top line in the quarter under review.

The consensus estimate indicates Outdoor revenues to grow 21.6% year over year to $472.24 million.

Garmin’s strengthening audio features across all of its marine product lines, owing to the acquisition of JL Audio, are likely to have benefited the Marine segment’s performance during the to-be-reported quarter.

The consensus estimate suggests Marine revenues of $226.16 million, up 7.4% from the figure reported in the year-ago quarter.

Strong momentum across infotainment categories and growing shipment of domain controllers are likely to have boosted Auto OEM revenues during the quarter to be reported.

The consensus mark for Auto OEM revenues is pegged at $101.5 million, indicating 23.1% year-over-year growth.

However, growing supply-chain constraints are expected to have affected the company’s Aviation segment during the fourth quarter.

The consensus mark for Aviation revenues is pegged at $203.9 million, indicating a year-over-year decline of 9.5%.

Macroeconomic uncertainties and weak personal navigation device market may have been major concerns.

What Our Model Says

According to the Zacks model, 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.

Garmin has an Earnings ESP of +0.86% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.

The Gap has an Earnings ESP of +24.44% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter’s loss of 75 cents per share.

Eldorado Gold (EGO - Free Report) has an Earnings ESP of +5.88% and a Zacks Rank #2 at present.

Eldorado Gold is set to announce fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pinned at 21 cents per share, indicating growth of 50% from the year-ago quarter’s reported figure.

Booking Holdings (BKNG - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.

Booking Holdings is scheduled to release fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for BKNG’s earnings is pegged at $29.69 per share, suggesting a jump of 20% from the prior-year quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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