Shares of GPS systems and tracking-device manufacturer Garmin (GRMN) surged on Wednesday after the company reported second-quarter earnings that surpassed analysts' forecasts, and raised its guidance for the remainder of the year on expected strong sales.
Shares of Garmin gained more than 7% after the company posted net income of $223.7 million, or $1.17 share, vs. $190.3 million, or $1 a share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting earnings of $1.01 a share. Sales jumped to $954.8 million, up from $894.5 million a year ago and well above the $929.6 million expected by analysts.
A jump in aviation-related equipment and services coupled with strong sales in its marine, fitness and outdoor segments helped offset a drop in its automotive business, where sales have declined amid the rise in popularity of apps like Google (GOOGL) -owned Waze, which drivers incorporate into their cars using Apple's (AAPL) CarPlay and automakers' own software.
Garmin also produces various types of fitness and health tracking devices and software, including menstrual cycle tracking.
"We are very pleased with the results we have delivered thus far, giving us the confidence to raise our full year 2019 revenue and (earnings per share) guidance," Garmin CEO Cliff Pemble in a statement.
For the full year, Garmin now expects revenue of approximately $3.6 billion, driven by higher expectations for its aviation, marine and auto segments. The company is now expecting full-year pro forma earnings of approximately $3.90 a share; analysts polled by FactSet are currently forecasting full-year per-share earnings of $3.72.
Shares of Garmin were up just over 7%, or $5.37, at $81.97 in early trading on Wednesday after ending the day Tuesday down 2.57% at $76.60.
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