Garmin (GRMN) to Report Q3 Earnings: What's in the Offing?

Garmin Ltd. GRMN is scheduled to report third-quarter 2020 results on Oct 28.

For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $907.4 million, indicating a decline of 2.9% from the prior-year quarter’s reported figure.

Further, the Zacks Consensus Estimate for earnings stands at $1.01 per share, suggesting a decline of 20.5% from the year-ago reported figure.

Notably, the company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 52.98%.

Garmin Ltd. Price and EPS Surprise


Garmin Ltd. Price and EPS Surprise

Garmin Ltd. price-eps-surprise | Garmin Ltd. Quote

Factors to Note

Garmin’s strength across the fitness and marine segments is expected to have benefited its third-quarter performance.

Solid momentum across the company’s advanced wearables and cycling products are likely to have continued aiding the performance of the fitness segment during the to-be-reported quarter. Further, contributions from the Firstbeat Analytics acquisition are expected to have benefited the segment.

Coming to the marine segment, robust chartplotters and advanced sonar technology are expected to have contributed well to the segment’s top-line growth in the quarter under review. Also, the growing popularity of boating and fishing during the ongoing pandemic is likely to have aided the Marine segment’s third-quarter performance.

However, disruptions led by the coronavirus outbreak are anticipated tohave affectedthe aviation segment in the third quarter. Uncertainties related to the ongoing pandemic are likely to have continued hurting OEM partners and retrofit activities.

Additionally, the shutdown of automotive factories, owing to the coronavirus pandemic, is expected to have continued impacting the auto segment negatively. Nevertheless, the strengthening momentum across Specialty RV and truck categories isanticipated to have contributed well.

Further, robust adventure watches are expected to have benefited the performance of Garmin’s outdoor segment in the quarter under review. Also, the integration of solar harvesting technology in adventure smartwatches is expected to have remained a tailwind for the segment.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Garmin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Garmin has an Earnings ESP of +0.79% and a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks you may consider, as our proven model shows that these too have the right combination of elements to post an earnings beat this quarter.

MercadoLibre, Inc. MELI has an Earnings ESP of +258.97% and it currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alphabet Inc. GOOGL has an Earnings ESP of +7.40% and a Zacks Rank of 2 at present.

J2 Global, Inc. JCOM has an Earnings ESP of +2.26% and a Zacks Rank #2.

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