Garmin, a maker of electronic devices for fitness, navigation and outdoor recreation, on Wednesday beat estimates for sales in the first quarter but came up short on earnings. Garmin stock fell after the report.
The Olathe, Kan.-based company earned an adjusted $1.61 a share on sales of $1.54 billion in the March quarter. Analysts polled by FactSet had expected earnings of $1.67 a share on sales of $1.52 billion. On a year-over-year basis, Garmin's earnings rose 13% while sales increased 11%.
Garmin raised its full-year revenue outlook to $6.85 billion, up 9% from 2024, from its previous guidance of $6.8 billion. However, it kept its adjusted earnings target unchanged at $7.80 a share, up 5.5%.
"While recent developments in global trade have created an atmosphere of uncertainty for many companies, we remain optimistic because of the resilience and flexibility our vertically integrated and highly diversified business model offers," Chief Executive Cliff Pemble said in a news release. "We are very pleased with our results so far, and we look forward to the opportunities ahead as the year continues to unfold."
Top-selling product categories for Garmin in the first quarter included fitness wearables and adventure smartwatches.
Garmin Stock Drops
On the stock market today, Garmin stock sank 8.4% to close at 186.87.
Garmin stock is on the IBD Tech Leaders list.
Garmin stock ranks first out of 18 stocks in IBD's consumer electronics industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 90 out of 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
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