GPS Provider Garmin's Stock Jumps 7.5% Premarket On Earnings Beat, Raised Guidance

Shares of GPS provider Garmin Ltd. jumped 7.5% in premarket trade Wednesday, after the company topped second-quarter profit and revenue estimates and raised guidance. Schaffhausen, Switzerland-based Garmin said it had net income of $170.9 million, or 91 cents a share, in the quarter, up from $161.1 million, or 85 cents a share, in the year-earlier period. Adjusted per-share earnings came to 88 cents, ahead of the FactSet consensus of 81 cents. Sales rose to $816.9 million from $811.6 million, also ahead of the FactSet consensus of $808 million. Chief Executive Cliff Pemble said growth was driven by double-digit gains for outdoor and aviation products. "The demand for advanced wearables was particularly strong, but was partially offset by negative trends in the activity tracker market. Our results thus far give us confidence in raising our outlook for the remainder of the year," he said in a statement. Garmin is now expecting full-year revenue of $3.04 billion, up from prior guidance of $3.02 billion. The company expects pro forma EPS, which excludes tax expenses, of $2.80, up from prior guidance of $2.65. The FactSet consensus is for full-year EPS of $2.69 and revenue of $3.01 billion. Shares are up 3% in 2017 through Tuesday, while the S&P 500 has gained 10.6%.

Copyright © 2017 MarketWatch, Inc.