Garmin's Strong Auto, Outdoor Growth Drives Analyst Rating, Despite Softer Fitness, Marine Sales

KeyBanc Capital Markets analyst Noah Zatzkin reiterated a Sector Weight rating on Garmin Ltd GRMN on Wednesday.

Garmin reported on Wednesday first-quarter 2025 revenue growth of 11% to $1.54 billion, beating the analyst consensus estimate of $1.50 billion. 

The GPS navigation and wearable technology company’s adjusted EPS of $1.61 missed the consensus estimate of $1.67. 

Also Read: Garmin Q4 Earnings: Wearables and Adventure Watches Drive Growth, 20% Dividend Hike, Stock Soars

Garmin now expects fiscal 2025 revenue of $6.85 billion versus the analyst consensus estimate of $6.83 billion. It reiterated an adjusted EPS outlook of $7.80 against the analyst consensus estimate of $7.92. 

Garmin delivered slightly softer EPS versus the Street on a top-line beat and adjusted the fiscal 2025 revenue guide upward, with EPS guidance unchanged.

The top-line beat was driven by stronger Auto OEM (+$25.1 million versus consensus) and Outdoor strength (+$2.8 million versus consensus) via adventure watch growth, partially offset by slightly softer revenue in Aviation (-$1.3 million versus consensus), Fitness (-$4.6 million versus consensus), and Marine (-$7.3 million).

Garmin tweaked its fiscal 2025 guide, now looking for revenue of $6.85 billion (versus $6.8 billion prior, versus consensus at ~$6.82 billion), but maintaining adjusted EPS guidance of $7.80 (versus consensus at ~$7.87), including gross margin of 58.5% (versus 58.7% prior, consensus at ~58.6%) and operating margin of 24.8% (versus 25% prior, consensus at ~25%).

By segment, Garmin expects the following revenue growth breakdown: Fitness +15% Y/Y (versus +10% Y/Y prior); Outdoor unchanged at +10% Y/Y; Aviation unchanged at +5% Y/Y; Marine ~flat Y/Y (versus +4% Y/Y prior) and Auto unchanged at +7% Y/Y.

Zatzkin’s fiscal 2025 EPS changed to $7.80 (from $7.71) to reflect the guide, and his fiscal 2026 EPS changed to $8.28 (from $8.16), reflecting continued resilience, momentum and tariff mitigation efforts.

GRMN Price Action: Garmin stock is down by 0.32% at $186.28 at publication on Thursday.

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