Garmin Posts Stronger-Than-Expected Earnings as Pandemic Drives Sales

The pandemic sparks interest in Garmin's products for boating, fitness and outdoor activities. .
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Garmin  (GRMN) - Get Report shares rose after the navigation systems company reported stronger-than-expected third-quarter earnings, helped by buoyant pandemic-related demand.

The coronavirus pandemic sparked interest in its products for boating, fitness and outdoor activities, the company said Wednesday.

Garmin shares traded at $102.53, up 3.98%, in premarket trading. The stock has risen 1% year to date through Tuesday.

Revenue was $1.11 billion in the third quarter, up 19% from $934.4 million in the year-ago quarter. Analysts expected revenue of $892 million for the latest quarter.

Marine-related sales surged 54%, fitness-related sales jumped 35% and outdoor activity-related sales were up 30%.

Net income soared to $313.4 million, or $1.63 a share, in the third quarter from $227.9 million, or $1.19 a share, last year. Adjusted profit reached $1.58 a share, topping analysts’ estimates.

“Demand for active lifestyle products fueled strong revenue growth resulting in record revenue and profits for the quarter,” Garmin CEO Cliff Pemble said in a statement. “Interest in our products remains high as we move into the important holiday selling season.”