InvestorsHub Logo
Followers 83
Posts 31888
Boards Moderated 85
Alias Born 03/22/2005

Re: None

Wednesday, 02/20/2019 2:28:43 PM

Wednesday, February 20, 2019 2:28:43 PM

Post# of 349
>>> Garmin Surges to 11-Year High as Smartwatches Are ‘on Fire’


Bloomberg

By Natasha Rausch

February 20, 2019


https://www.bloomberg.com/news/articles/2019-02-20/garmin-surges-to-11-year-high-as-smartwatches-are-on-fire?srnd=premium


Earnings and revenue top highest estimates for fourth quarter


Garmin shares rallied 17 percent to their highest level in 11 years as demand for watches from outdoor enthusiasts helped fourth-quarter earnings beat the highest estimates.

“Their smart wearable business is on fire,” Tigress Financial Partners Chief Investment Officer Ivan Feinseth said in a phone interview. “They are becoming a leader in fitness wearables.”

Revenue from Garmin’s outdoor segment increased 25 percent in the quarter “with significant contributions from adventure watches,” the company said in a statement Wednesday. Garmin forecast 2019 revenue of about $3.5 billion, surpassing the $3.43 billion average estimate of analysts surveyed by Bloomberg. The consumer-electronics maker also highlighted the launch of new products including Descent, a watch for divers.

Growth in adventure watches spurs earnings beat

Garmin shares have long been undervalued by the Street, according to Feinseth. “This move is well-deserved.”

Competitors also rose after the report, with Fitbit Inc. increasing as much as 3.8 percent, Fossil Group Inc. adding as much as 2 percent.

Feinseth is also bullish on Garmin’s announcement last week that it will buy Tacx, a closely held Dutch company that makes indoor bike trainers. Feinseth called it an “incredible acquisition” and sees the combination of Tacx and Garmin’s fitness-tracking technology as a “serious competitor to Peloton.”

<<<



Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.