News

Garmin GRMN is scheduled to report its first-quarter 2024 results on May 1.

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $1.24 billion, suggesting an increase of 7.9% from the year-ago quarter.

The consensus estimate for earnings is pegged at $1.00 per share, indicating a fall of 2% from the year-ago quarter’s reported figure. The figure has remained unchanged in the past 30 days.

Garmin’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.9%.

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

Garmin Ltd. Price and EPS Surprise

Key Factors to Note

Garmin’s expanding portfolio is expected to have been the key catalyst for its top-line growth in the first quarter of 2024.

In the fitness segment, strong demand for running watches and its robust lineup of recently introduced cycling and wellness products is expected to have aided its revenue growth in the quarter under review.

The Zacks Consensus Estimate for the Fitness segment is pegged at $268.6 million, indicating 9.8% year-over-year growth.

The company’s increasing efforts toward bolstering its Outdoor segment on the back of its newly launched products, like the eTrex Solar and Descent G1 Solar Ocean Edition, are expected to have positively impacted its top line in the to-be-reported quarter.

The consensus estimate indicates Outdoor revenues to grow 3.9% year over year to $341.6 million.

Strength in the Marine segment driven by its JL Audio business is likely to have boosted the company’s performance in the first quarter.

The consensus estimate suggests Marine revenues of $292.8 million, up 5% from the figure reported in the year-ago quarter.

The company’s expanding market share and customer base for domain controllers, owing to its increased shipments to BMW, is likely to have boosted Auto OEM revenues during the quarter to be reported.

The consensus mark for Auto OEM revenues is pegged at $116.97 million, indicating 43.6% year-over-year growth.

Growing momentum across OEM equipment categories, driven by increased demand in private air travel is expected to have bolstered the Aviation segment’s performance in the to-be-reported quarter.

The consensus mark for Aviation revenues is pegged at $217.83 million, indicating year-over-year growth of 2%.

However, weakening demand in aftermarket categories is expected to have been a headwind for the company.

Rising macroeconomic uncertainties and inflationary pressure 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 0.00% and a Zacks Rank #3 at present. 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 stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.

APi Group APG has an Earnings ESP of +2.06% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

APi Group is scheduled to release first-quarter 2024 results on May 2. The Zacks Consensus Estimate for APG’s earnings is pegged at 32 cents per share, indicating growth of 28% from the year-ago quarter’s reported figure.

Arista Networks ANET has an Earnings ESP of +2.49% and a Zacks Rank #1 at present.

ANET is set to report its first-quarter 2024 results on May 7. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.74 per share, indicating growth of 21.7% from the year-ago quarter’s reported figure.

Cardinal Health CAH has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.

CAH is scheduled to release third-quarter fiscal 2024 results on May 2. The Zacks Consensus Estimate for CAH’s earnings is pegged at $1.95 per share, indicating growth of 12.1% from the year-ago quarter’s reported figure.

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

Buy 5 Stocks BEFORE Election Day

Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).

Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.

They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.

Don’t Wait. Download FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.