Garmin (GRMN) Boosts Aviation Business With Latest Move

Garmin GRMN is leaving no stone unturned to strengthen its aviation segment on the back of strong flight deck offerings.

Recently, the company entered into a long-term agreement to provide the state-of-the-art Garmin G3000 integrated flight deck to BETA Technologies.

G3000 will be deployed in the latter’s CX300 electric fixed-wing aircraft and A250 electric vertical takeoff and landing aircraft.

The underlined flight deck comes with a vibrant high-resolution flight display, strong communication, navigation and surveillance air traffic management features.

Growing Certifications

The latest move highlights the reliability of Garmin’s aviation technology, which has been aiding it in winning several certifications.

Recently, the company’s GFC 500 digital autopilot received Supplemental Type Certification (STC) from the Federal Aviation Administration (FAA) for use in the Cessna 177/177A Cardinal and the Beechcraft T34A/T34B Series. This STC also includes twin-engine aircraft - Piper Seneca PA-34-200T and PA-34-220T II-V.

The company’s GFC 600 digital autopilot received STC from the FAA for use in Beechcraft King Air F90 aircraft models.

The GFC 600 Autopilot also received STC from the FAA for use in the Piper PA-31-350 Navajo Chieftain aircraft model.

Its GI 275 electronic flight instrument also received STC from the FAA for use in Bell 407 and Robinson R66 helicopters.

Garmin Ltd. Price and Consensus

Garmin Ltd. Price and Consensus

Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote

Aviation in Focus

We believe the company’s strong endeavors toward bolstering its aviation segment, which offers integrated avionics or flight decks, panel-mounted navigation, traffic, audio, transponder, weather and other products such as portable and wearable solutions, are expected to continue driving its momentum among the various flight owners as well as pilots.

Garmin’s family of autonomous safety solutions — Garmin Autonomi, which comprises Emergency Descent Mode and Electronic Stability and Protection and Autoland — has emerged as a key catalyst for its aviation business.

A robust flight display portfolio has been playing a crucial role in shaping the growth trajectory of Garmin’s aviation business.

The company enjoys solid momentum across OEM and after-market customers on the back of its popular aviation solutions.

The growing endeavors to strengthen the aviation segment will continue to drive Garmin’s top line.

In second-quarter 2023, the underlined segment generated sales of $217.4 million (16.4% of the total sales), increasing 6% on a year-over-year basis.

For 2023, our model estimate for aviation sales stands at $832.1 million, reflecting growth of 5% from 2022’s level.

However, economic uncertainties and foreign exchange headwinds remain concerns for the company.

Zacks Rank & Stocks to Consider

Currently, Garmin carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader technology sector are Asure Software ASUR, Pinterest PINS and Arista Networks ANET. While Asure Software and Pinterest sport a Zacks Rank #1 (Strong Buy), Arista Networks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Asure Software shares have gained 4.4% in the year-to-date period. ASUR’s long-term earnings growth rate is currently projected at 27%.

Pinterest shares have gained 10.1% in the year-to-date period. PINS’ long-term earnings growth rate is currently projected at 31.7%.

Arista Networks shares have gained 52.5% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.7%.

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