Outdoor recreation, fitness and navigation device maker Garmin (GRMN) on Wednesday crushed Wall Street’s targets for the first quarter but its full-year guidance lagged views. Garmin stock dropped after the report.
The Olathe, Kan.-based company earned an adjusted $1.18 a share on sales of $1.07 billion in the March quarter. Analysts expected Garmin earnings of 89 cents a share on sales of $937.7 million. On a year-over-year basis, Garmin earnings rose 30% while sales climbed 25%.
“Broad momentum across our business segments resulted in strong double-digit revenue and profit growth,” Chief Executive Cliff Pemble said in a news release. “Interest in fitness, health, and active lifestyle products has never been higher, and we believe that we are well positioned to capitalize on the opportunities ahead.”
Garmin reports sales in five product categories: fitness, outdoor, aviation, marine and auto. In the first quarter, outdoor device sales grew the fastest, up 46% year over year to $256 million. Fitness products posted the next fastest growth, up 38% to $308 million.
Garmin Stock Drops After Report
On the stock market today, Garmin stock fell 2.7% to close at 137.38.
On April 5, Garmin stock broke out of a flat base at a buy point of 133.53, according to IBD MarketSmith charts. It ended the regular session Tuesday just above the 5% chase zone of its breakout. Earlier in the session Tuesday, Garmin stock notched an all-time high of 142.94.
Garmin maintained its guidance for the full year. It expects to earn an adjusted $5.15 a share on sales of $4.6 billion in 2021. Last year, it earned an adjusted $5.14 a share, up 16%, on sales of $4.19 billion, up 11%.
However, Wall Street had predicted 2021 earnings of $5.32 a share on sales of $4.62 billion.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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