Revenue rose 8% for Garmin in the first quarter
Consumer tech company Garmin (GRMN) announced its first-quarter earnings results on May 1, 2019, and reported sales of $766 million, a rise of 8% YoY (year-over-year). While its gross margin came in at 59%, its operating margin was 19.8% in the first quarter. Garmin’s operating income rose 6% YoY.
The company reported EPS of $0.74, a rise of 7% YoY, in the first quarter. Analysts expected the company to post sales of $731 million and EPS of $0.71 in the quarter. Garmin beat Wall Street analysts’ sales estimate by 4.8%, and it beat their earnings estimate by 4.2% in the quarter.
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So why did Garmin shares fall 6.6% yesterday?
Weak guidance drove stock lower
Garmin expects sales of $3.5 billion and EPS of $3.70—lower than analysts’ estimates—in 2019. Analysts expect Garmin to post sales of $3.53 billion on EPS of $3.75 in 2019.
During Garmin’s earnings call, CEO Cliff Pemble stated, “We are encouraged by our first quarter results. Since Q1 represents the lowest seasonal quarter of our financial year and much of the year remains ahead of us, we are maintaining the guidance issued in February.”