Electronic manufacturer Garmin Ltd. (GRMN) released its first-quarter results last week. The company’s product categories showed strong sales growth almost across the board.
According to Garmin, the company’s first-quarter revenue increased by 25 % to $ 1.07 billion. The fitness, outdoor, and water sports categories were the highest performers, leading the way in sales. Garmin’s car navigation segment experienced growth for the second consecutive quarter, despite previously declining revenue. As for the aviation division, it was down 8%, but that is due to significant growth in the first quarter last year, so the comparison is complicated. Even though its strongest market segment slowed down, Garmin managed to increase revenue, which is a testament to its strength and smart revenue diversification.
Even though revenue forecasts were revised downward, gross profit margins rose to 59.8% and operating income soared to 23.3% thanks to lower advertising and sales spending. Profits increased 41% YoY to $250 million as a result of these trends. A 63 percent increase in operating cash flow contributed to Garmin’s $ 368 million improvements.
Sales for the full year should increase from $ 4.2 billion last year to $ 4.6 billion this year, according to Garmin. Despite the overarching economic crisis, the company has seen its revenue increase steadily each of the last six years. As Garmin pours more money into research and development, the company’s profits will remain stable after growing 16 % last year. Garmin also plans to consolidate the gains in market share over the past few years.
The price of Garmin Ltd. (GRMN) hit an intraday high of $138.67 from an opening price of $137.89. In Monday’s trading session, the stock also hit an intraday low of $137.02. Stock trading volume for Garmin Ltd. on Monday was more than 33.81% of the average. The stock’s trading volume on Monday was 0.5 million.