Garmin Set to Release Q1 2025 Earnings: Key Insights

Garmin (GRMN) will report its first-quarter 2025 earnings on April 30, before the market opens. The Zacks Consensus Estimate predicts earnings of $1.57 per share, reflecting a 13.4% increase compared to the previous year.

In the last four quarters, Garmin has consistently exceeded the Zacks Consensus Estimate, showing an average surprise of 28.51%. Revenue expectations for this quarter are set at $1.57 billion, which also indicates year-over-year growth of 13.37%. This revenue figure has remained stable over the past 60 days.

Below, we analyze key factors that may impact Garmin’s performance this quarter.

Insights Into Garmin’s Price and Earnings Trends

Garmin Ltd. Price and EPS Trend

Factors Influencing Garmin’s Performance

Garmin’s expanding product portfolio is expected to be a significant growth driver for revenue in Q1 2025. In the fitness segment, an increasing demand for advanced wearable technology, alongside several new wellness products like HRM 200 and Instinct 3, is anticipated to contribute to revenue growth. The Zacks Consensus Estimate for the fitness segment’s revenues stands at $398.9 million, suggesting a 16.3% year-over-year increase.

The Outdoor segment is also projected to perform well, bolstered by strong sales of wearables and services like inReach SOS and Garmin Response. New products, including the vivoactive 6 and premium Garmin Connect plan, are likely to attract new customers. The revenue estimate for this segment is $400.3 million, reflecting a 9.3% growth year over year.

Furthermore, the Marine segment’s growth is attributed to strong sales from the JL Audio business and new offerings such as the Fusion Apollo Marine Speakers. The acquisition of Lumishore, known for marine LED lighting, is also expected to enhance Garmin’s market presence. The consensus estimate for Marine revenues is $349.2 million, a 6.9% increase from the previous year.

The Aviation segment may see positive results, driven by growing demand for private air travel. The revenue estimate is set at $229.6 million, indicating a year-over-year rise of 5.9%. In the Auto OEM sector, Garmin’s market share is likely boosted by increased shipments to BMW, with projected revenues reaching $141.8 million, a 10% increase from last year.

Earnings Outlook for Garmin

Our model suggests Garmin is likely to experience an earnings beat this season. With a positive earnings ESP of +2.88%—the difference between the Most Accurate Estimate ($1.60 per share) and the Zacks Consensus Estimate ($1.52)—and a Zacks Rank of #3 (Hold), Garmin appears to have favorable conditions for exceeding expectations.

Other Stocks with Favorable Earnings Potential

Several stocks share a positive outlook based on our earnings model:

• Qualcomm (QCOM) shows an earnings ESP of +0.86% and carries a Zacks Rank of #2 (Buy). It is also set to report on April 30, with consensus earnings at $2.82 per share, up by 2 cents over the last 30 days.
• Meta Platforms (META) reports on the same day, with an estimated EPS of $5.21, reflecting a 10.6% increase from the same quarter last year.
• Cognizant Technology Solutions (CTSH) carries an earnings ESP of +0.02% and a Zacks Rank #3, forecasting first-quarter earnings of $1.19 per share, up 6.3% year over year.

Conclusion

In summary, Garmin’s upcoming earnings report is anticipated to showcase solid growth across various segments, driven by product innovations and increasing consumer demand. Investors will be keen to see if Garmin continues its streak of surpassing earnings expectations.

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