Garmin Raises Full-Year Guidance, Beats Results Amid Unbroken Demand

(Reuters) – Garmin raised its full-year profit and revenue forecasts on Wednesday, expecting a series of wearable product launches ahead of the holiday season to further boost demand, sending the company's shares up 9.5 in premarket trading % increased.

Garmin's fitness segment, the second largest by revenue, posted robust growth in the first half of the year, largely driven by rising demand for wearables and easing fears about sluggish consumer spending.

This continued in the third quarter, with the segment's revenue of $463.9 million beating analyst estimates of $396.1 million, according to data compiled by LSEG.

The company also saw positive trends in the number of downloads of its Garmin Connect app, which pairs with its wearables, and monthly active users (MAUs) during the quarter.

Garmin has launched new wearables ahead of the crucial holiday shopping season, continuing to rely on its diverse product portfolio to weather weaker consumer and business spending amid an uncertain economy.

The company now expects full-year revenue of about $6.12 billion, compared to a previous forecast of about $5.95 billion.

On a pro forma basis, the company now expects to generate earnings of $6.85 per share, above the previous forecast of $6.00.

For the quarter ended Sept. 30, the company reported revenue of $1.59 billion, while analysts had expected $1.44 billion, according to data compiled by LSEG.

Profit of $1.99 per share on a pro forma basis also beat analysts' expectations of $1.44.

(Reporting by Rishi Kant in Bengaluru; Editing by Savio D'Souza)