GPS Maker Garmin Shares Jump 6% Premarket As Earnings Blow Past Estimates

By Ciara Linnane Markets MarketWatch Pulse

Garmin Ltd. shares jumped 6% in premarket trade Wednesday, after the company blew past earnings estimates for the fourth quarter and offered upbeat guidance for 2017. The GPS maker said it had net income of $136.6 million, or 72 cents a share, in the fourth quarter, up from $132.4 million, or 70 cents a share, in the year-earlier period. Adjusted per-share earnings came to 73 cents, well ahead of the FactSet consensus of 58 cents. Sales rose to $860.8 million from $781.4 million, also ahead of the FactSet consensus of $793 million. Growth was driven by strong sales in the company's outdoor, fitness, marine and aviation segments, Chief Executive Cliff Pemble said in a statement. For 2017, the company is expecting adjusted EPS of $2.65 and sales of about $3.02 billion. The current FactSet consensus is for 2017 EPS of $2.66 and $2.97 billion. Shares have gained 23% in the last 12 months, while the S&P 500 has gained 21.7%.

Continue Reading Below

Copyright © 2017 MarketWatch, Inc.