OLATHE (dpa-AFX) - Navigational devices maker Garmin Ltd. (GRMN), Wednesday reported an increase in profit for the second quarter, driven largely by sales growth at its fitness and aviation segments, with both earnings and revenue beating Wall Street estimates. Moving ahead, the company lifted its full year financial outlook based on its strong first half show.
Schaffhausen, Switzerland-based Garmin's second-quarter profit rose to $181.98 million or $0.93 per share from last year's $172.49 million or $0.88 per share.
Adjusted earnings improved to $1.02 per share from $0.76 per share last year. On average, 17 analysts polled by Thomson Reuters expected earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the second quarter increased 12 percent to $777.85 million from last year's $696.56 million. Analysts expected revenues of $710.47 million for the quarter.
Fitness segment sales surged 79 percent to $150.68 million, while aviation sales rose 11 percent to 97.30 million last year.
Gross margin, or percentage of sales left after subtracting production costs, improved to 57 percent from 55 percent a year ago. Operating margin advanced to 28 percent from 24 percent last year.
Moving ahead, the company lifted its adjusted earnings guidance range to $2.95 to $3.05 per share from its prior outlook of $2.50 to $2.60 per share. Analysts currently expect earnings of $2.77 per share for the year.
The company also lifted its revenue outlook range to $2.75 billion to $2.85 billion from its prior estimate of $2.6 billion to $2.7 billion. Analysts currently expect revenues of $2.71 billion for the year.
GRMN is currently trading at $54.99, down $2.59 or 4.50% on the Nasdaq.
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