EU and US could reach trade deal this weekend - Reuters
In a remarkable display of market confidence, Garmin Ltd (NYSE:GRMN). shares have soared to an all-time high, reaching a price level of $215.65. This milestone underscores the company's robust performance and investor optimism in its growth prospects. Over the past year, Garmin's stock has witnessed an impressive surge, with a 1-year change showing a substantial increase of 77.92%. This significant uptick reflects the company's successful expansion strategies and its strong foothold in the global navigation and wearable technology markets. Investors are closely monitoring Garmin's trajectory as it continues to innovate and expand its product offerings in an increasingly tech-driven world.
In other recent news, Garmin Ltd. reported record-breaking third-quarter results for 2024, with a 24% increase in consolidated revenue to $1.59 billion, leading to a gross margin expansion to 60% and a 62% year-over-year increase in operating income. The company also revised its expected earnings per share (EPS) for 2024 to $6.85, up from the earlier forecast of $6.00, surpassing market expectations. Despite these robust results, BofA Securities and JPMorgan maintained their Underperform and Neutral ratings on the stock respectively.
BofA Securities increased its price target for Garmin from $150 to $185, while JPMorgan raised its price target from $178 to $212. Both firms acknowledged the company's strong performance, but expressed caution regarding the stock's future performance, suggesting that its current valuation may already reflect an aggressive growth trajectory.
In spite of these concerns, JPMorgan revised its earnings outlook for Garmin to $7.60 per share in 2025, up from the previous estimate of $6.55, and $8.50 per share in 2026, increased from $7.30. These recent developments reflect Garmin's strong financial performance and growth across all business segments, despite challenges faced by the company's Auto OEM business. These are the recent highlights for Garmin Ltd.
InvestingPro Insights
Garmin's recent stock performance aligns with several key financial indicators and market trends. According to InvestingPro data, the company's market capitalization stands at an impressive $41.36 billion, reflecting its strong position in the navigation and wearable technology sectors. The company's revenue growth of 17.91% over the last twelve months and a notable 24.15% growth in the most recent quarter underscore its expanding market presence and product demand.
InvestingPro Tips highlight Garmin's financial stability and shareholder-friendly policies. The company holds more cash than debt on its balance sheet, indicating a strong financial position. Additionally, Garmin has maintained dividend payments for 22 consecutive years and has raised its dividend for 7 consecutive years, demonstrating a commitment to returning value to shareholders.
The stock's current trading near its 52-week high aligns with the reported 1-year price total return of 77.21%, confirming the article's mention of the significant stock surge. This performance is further supported by strong returns over various time frames, including a 29.59% return in the last month and a 65.9% return year-to-date.
For investors seeking more comprehensive analysis, InvestingPro offers 17 additional tips on Garmin, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.