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Garmin (GRMN) Boosts Fitness Offerings With Edge 1050 Launch

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Garmin (GRMN - Free Report) unveiled the smart cycling computer, namely Edge 1050, in order to strengthen its fitness offerings.

The new cycling computer features improved battery life, superior navigation, performance tracking, cycling awareness and smart connectivity.

The Edge 1050 is equipped with safety and tracking features like LiveTrack and incident detection. It is also compatible with the Varia line of cycling awareness devices and inReach satellite communicators.

With the new smart cycling computer, Garmin aims to provide an enhanced riding experience to cyclists. Using Edge 1050, cyclists can receive road hazard alerts reported by fellow cyclists, and check in-ride messaging and leaderboards during group rides.

Garmin Ltd. Price and Consensus

 

Garmin Ltd. Price and Consensus

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

Expanding Offerings for Cyclists

The latest launch has expanded Garmin’s offerings for cyclists. The company has been witnessing strong traction among cycle enthusiasts on the back of its robust portfolio.

Garmin’s Edge 1040 Solar, which features solar charging capability and multi-band GNSS technology, helps cyclists to ride confidently on challenging roads.

Garmin’s Varia RCT715 rearview radar, featuring a camera and tail light, aims to provide cyclists with enhanced visibility of approaching vehicles during a ride.

The company offers Tacx NEO Motion Plates, which provide movement flexibility and allow trainers to adopt a natural riding position for effective training.

It also offers GPS cycling computers named Edge Explore 2 and Edge Explore 2 Power Mount Bundle.

Fitness Business: Key Catalyst

Expanding offerings for cyclists are bolstering Garmin’s fitness segment, which is the key catalyst.

Apart from cycling devices, Garmin’s strong portfolio of wearables is driving the underlined segment’s performance.

The expanding Venu, Lily and vivoactive smartwatch series, which offer new health and wellness features, including body battery energy monitoring, advanced sleep monitoring, stress, respiration and heart rate tracking, have been driving Garmin’s customer momentum in the smartwatch and wearable markets.

The Fitness segment generated sales of $342.9 million in first-quarter 2024, accounting for 24.8% of total sales, increasing 40% year over year.

The Zacks Consensus Estimate for 2024 Fitness revenues is pegged at $1.54 billion, indicating a growth of 14.6% year over year.

The strengthening performance of the fitness segment will drive GRMN’s overall financial performance in the near term.

For 2024, Garmin expects total revenues of $5.75 billion. The Zacks Consensus Estimate for the same stands at $5.90 billion, indicating year-over-year growth of 12.9%.

The company projects 2024 earnings at $5.40 per share. The consensus mark for 2024 earnings is pegged at $5.77 per share, indicating a 3.2% rise from the year-ago reported figure. The figure has been revised upward by 5.9% in the past 60 days.

Zacks Rank & Other Stocks to Consider

Currently, Garmin sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Dropbox (DBX - Free Report) and CACI International (CACI - Free Report) . While Arista Networks and Dropbox sport a Zacks Rank #1 (Strong Buy), CACI International carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks’ shares have gained 42.1% in the year-to-date period. The long-term earnings growth rate for ANET is expected to be 16.07%.

CACI International’s shares have gained 34.2% in the year-to-date period. The long-term earnings growth rate for CACI is projected at 10.35%.

Shares of Dropbox have declined 26% in the year-to-date period. The long-term earnings growth rate for DBX is 11.44%.


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