Outdoor recreation, fitness and navigation device maker Garmin (GRMN) on Wednesday trounced Wall Street’s targets for the third quarter thanks to strong sales in its aviation and marine businesses. But the company guided low. Garmin stock fell hard on the news.
The Olathe, Kan.-based company earned an adjusted $1.41 a share on sales of $1.19 billion in the September quarter. Analysts expected Garmin earnings of $1.27 a share on sales of $1.15 billion, according to FactSet. On a year-over-year basis, Garmin earnings slid 11% while sales climbed 7%.
Of the company’s five product categories, aviation and marine posted the strongest growth in the third quarter. Aviation device sales jumped 19% year over year to $180 million. Marine device sales surged 25% to nearly $208 million.
Meanwhile, auto device sales advanced 7% to $138 million. Fitness device sales rose 4% to $342 million. However, outdoor device sales dipped 3% to about $324 million.
“Strong demand for active lifestyle products continued, and our marine and aviation segments recorded impressive double-digit growth resulting in record consolidated revenue in the third quarter,” Chief Executive Cliff Pemble said in a news release.
But for the current quarter, Garmin expects to earn an adjusted $1.33 a share on sales of $1.36 billion. Analysts had predicted earnings of $1.56 a share on sales of $1.38 billion in the December quarter.
Garmin Stock Falls
On the stock market today, Garmin stock tumbled 8.8% to close at 146.21. On Tuesday, Garmin stock declined 2.3% to 160.30.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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