Yahoo Finance Garmin Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Garmin Ltd. (NYSE:GRMN) just released its quarterly report and things are looking bullish. Garmin delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$1.4b-10% above indicated-andUS$1.43-47% above forecasts- respectively The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Garmin after the latest results.
View our latest analysis for Garmin
Following the latest results, Garmin's nine analysts are now forecasting revenues of US$5.80b in 2024. This would be a modest 6.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to tumble 21% to US$5.62 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$5.74b and earnings per share (EPS) of US$5.45 in 2024. So the consensus seems to have become somewhat more optimistic on Garmin's earnings potential following these results.
The consensus price target rose 5.0% to US$152, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Garmin analyst has a price target of US$175 per share, while the most pessimistic values it at US$118. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Garmin'shistorical trends, as the 8.4% annualised revenue growth to the end of 2024 is roughly in line with the 8.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.4% annually. So it's pretty clear that Garmin is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Garmin's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Garmin going out to 2026, and you can see them free on our platform here..
Even so, be aware that Garmin is showing 1 warning sign in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
