Swiss navigation device manufacturer Garmin announced on Wednesday a full-year financial outlook surpassing Wall Street expectations. The company anticipates favorable results driven by the sustained growth in its outdoor and auto OEM segments.
In early trading, Garmin's U.S.-listed shares rose by 8.9%.
Garmin specializes in wearables tailored for professional use and offers GPS-enabled products for defense and recreational purposes, commanding premium prices for its high-end, specialized items.
Garmin's distinct market position has enabled it to effectively compete against tech giants like Apple and Samsung, who have recently entered the high-end wearables market that Garmin currently dominates with products like the Apple Watch Ultra and Galaxy Watch Ultra.
For 2025, Garmin forecasts revenue of around $6.80 billion, exceeding analysts' expectations of $6.72 billion. The company also anticipates a full-year adjusted profit of $7.80 per share, outperforming the estimated $7.74 per share.
In the holiday season quarter, Garmin's outdoor segment, generating the highest revenue, experienced robust demand for its adventure watches, achieving quarterly revenues of $629.4 million, surpassing the estimated $585.6 million.
Revenue from Garmin's auto OEM segment surged by 30% to $165.8 million, driven by augmented shipments of domain controllers to automakers such as BMW.
In the quarter ending on December 31, Garmin reported revenues of $1.82 billion, surpassing analysts' projections of $1.7 billion. On a pro forma basis, the company's profit was $2.41 per share, exceeding analysts' anticipated profit of $2.03 per share.