UPDATE: Garmin Posts Upbeat Q2 Earnings, Lifts FY14 Forecast

Shares of Garmin

jumped more than 9% in pre-market trading after the company reported stronger-than-expected second-quarter earnings and raised its forecast for the year. For the year, Garmin now projects earnings of $2.95 to $3.05 per share on revenue of $2.75 billion and $2.85 billion. The company had earlier projected earnings of $2.50 to $2.60 per share on revenue of $2.6 billion to $2.7 billion. The Schaffhausen, Switzerland-based company posted a quarterly profit of $182 million, or $0.93 per share, versus a year-ago profit of $172.5 million, or $0.88 per share. The recent quarter results included $17.8 million in foreign currency loss. Excluding certain items, its earnings rose to $1.02 per share versus $0.76 per share. Its revenue surged 12% to $777.8 million. However, analysts were expecting earnings of $0.76 per share on revenue of $710 million. Garmin's automotive and mobile segment sales rose 2%, while its outdoor business's revenue slipped 1%. Fitness segment sales climbed 79%, while marine segment sales rose 1%. Garmin's aviation segment sales jumped 11% in the quarter. Garmin generated $143 million of free cash flow in the quarter. “Our great start to 2014 continued with a second consecutive quarter of revenue, operating income and pro forma EPS growth. We are excited to see the positive consumer reception for many of our recently introduced products and are maintaining our focus on innovation and diversification to drive further growth opportunities,” said Cliff Pemble, president and chief executive officer (CEO) of Garmin. Garmin shares jumped 9.07% to $62.80 in pre-market trading.