Garmin Ltd. (NYSE:GRMN) is a well-known player in the technology sector, specializing in GPS technology and wearable devices. The company operates across various segments, including fitness, marine, aviation, auto OEM, and outdoor markets. Garmin faces competition from companies like Fitbit and TomTom, but it has carved out a strong niche with its diverse product offerings.
On February 19, 2025, Garmin is set to release its quarterly earnings before the market opens. Analysts expect the earnings per share (EPS) to be $1.90, with revenue projected at approximately $1.7 billion. This aligns closely with the Zacks Consensus Estimate, which anticipates an EPS of $1.89, marking a 9.88% increase from the previous year.
Garmin has a track record of exceeding earnings expectations, with an average surprise of 28.51% over the past four quarters. The projected revenue of $1.68 billion for the fourth quarter reflects a 13.42% year-over-year growth. This growth is likely driven by strong demand in the fitness segment, particularly for advanced wearable technology.
The company's financial metrics provide further insight into its performance. Garmin's price-to-earnings (P/E) ratio is approximately 26.92, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 6.85, reflecting the market's valuation of its revenue.
Garmin's financial health is underscored by its low debt-to-equity ratio of 0.0146, highlighting minimal reliance on debt financing. The current ratio of 3.30 suggests strong liquidity, indicating the company's ability to cover short-term liabilities with its short-term assets. These metrics, combined with a stable EPS estimate, position Garmin favorably in the market.
