Garmin to Report Q1 Earnings: What's in Store for the Stock?

Garmin GRMN is scheduled to report first-quarter 2025 results on April 30, before market open.

The Zacks Consensus Estimate for Garmin’s first-quarter 2025 earnings is pegged at $1.57 per share, implying a year-over-year increase of 13.4%.

Garmin’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 28.51%.

The Zacks Consensus Estimate for Garmin’s first-quarter 2025 revenues is pegged at $1.57 billion, suggesting year-over-year growth of 13.37%. The figure has remained unchanged over the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let’s see how things have shaped up for this announcement.

Key Factors to Note for Garmin

Garmin’s deepening portfolio is expected to have been the key growth driver for its top-line growth in the first quarter of 2025.

In the fitness segment, strong demand for advanced wearables and its robust lineup of recently introduced wellness products like HRM 200, Descent G2, Approach G20 Solar, Approach S44 and S50, Instinct 3 and Lily 2 Active are expected to have aided its revenue growth in the quarter under review.

The Zacks Consensus Estimate for revenues in the Fitness segment is pegged at $398.9 million, indicating 16.3% year-over-year growth.

Strong momentum across its wearables offerings and inReach SOS service, Garmin Response, is expected to have positively impacted the Outdoor segment’s performance in the to-be-reported quarter. Latest launches, including the Instinct 3, vivoactive 6 and Garmin Connect plus premium plan, are likely to have brought in more customers, driving revenues further.

The consensus estimate for Outdoor revenues is pegged at $400.3 million, suggesting growth of 9.3% year over year.

Strength in the Marine segment, driven by its JL Audio business and its robust portfolio of newly launched products like APK 10 Autopilot Keypad, Fusion Apollo Marine Speakers and SERV+ display, is likely to have boosted the company’s performance in the first quarter. Moreover, the acquisition of Lumishore, a provider of marine LED lighting, is expected to have added market share and also contributed to GRMN’s top line in the to-be-reported quarter.

The consensus estimate for Marine revenues is pinned at $349.2 million, up 6.9% from the figure reported in the year-ago quarter.

Growing momentum across OEM equipment categories, driven by increased demand in private air travel, is expected to have bolstered the Aviation segment’s performance in the to-be-reported quarter.

The consensus mark for Aviation revenues is pegged at $229.6 million, indicating year-over-year growth of 5.9%.

The company’s expanding market share and customer base for domain controllers, owing to its increased shipments to BMW, is likely to have boosted Auto OEM revenues during the first quarter.

The consensus mark for Auto OEM revenues is pegged at $141.8 million, indicating 10% year-over-year growth.

Earnings Whispers for GRMN

Our proven model predicts an earnings beat for Garmin this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.60 per share) and the Zacks Consensus Estimate ($1.52 per share), is +2.88%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: Garmin carries a Zacks Rank #3 at present.

Other Stocks With Favorable Combination

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Qualcomm QCOM has an Earnings ESP of +0.86% and sports a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is set to report second-quarter fiscal 2025 results on April 30. The Zacks Consensus Estimate for QCOM’s first-quarter fiscal 2025 earnings per share is pegged at $2.82, up by 2 cents over the past 30 days. QCOM shares have plunged 9.9% over the past year.

Meta Platforms META has an Earnings ESP of +3.88% and flaunts a Zacks Rank #3 at present.

It is set to report first-quarter fiscal 2025 results on April 30. The Zacks Consensus Estimate for META’s first-quarter 2025 earnings is pegged at $5.21 per share, down by a penny over the past seven days, indicating a rise of 10.6% from the year-ago quarter’s reported figure. META shares have declined 20.8% over the past year.

Cognizant Technology Solutions CTSH has an Earnings ESP of +0.02% and carries a Zacks Rank #3 at present.

It is set to report first-quarter 2025 results on April 30. The Zacks Consensus Estimate for CTSH’s first-quarter earnings is pegged at $1.19 per share, unchanged over the past 60 days, indicating a rise of 6.3% from the year-ago quarter’s reported figure. CTSH shares have surged 8% over the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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