Number one, Americans’ waistlines have gotten wider. However, Garmin is also a fierce competitor in the arena, offering myriad consumer options – including fashion and hybrid smartwatches.įortuitously and cynically, Garmin’s total addressable market for its fitness trackers and smartwatches expanded due to two key reasons. It’s easy to forget within the madness of the new normal that prior to the COVID-19 pandemic, one of the major talking points in the business ecosystem was Alphabet ( GOOG, GOOGL) via Google acquiring Fitbit, a popular manufacturer of fitness trackers. Still, despite the hiccups, GRMN stock could be built for the long haul. In addition, the consensus estimate among analysts was $5.90. Previously, though, the leadership team had forecast $5.90. Garmin rang up sales of $1.24 billion, missing analysts’ consensus target of $1.36 billion.įinally, management stated that full-year 2022 earnings would be $4.90 per share. However, the top line presented a less-than-ideal picture. Here, the results met Wall Street’s expectation, which called for earnings of $1.44 a share. Garmin’s adjusted earnings were $1.44 per share. Per Reuters, the tech firm reported a net income of $1.33 per share. In late July, the company released its results for the second quarter, presenting a mixed bag. Moreover, financial reasons exist to be skeptical about Garmin. Plus, as tech firms, in general, are struggling – with the Nasdaq Composite index conspicuously lagging the benchmark S&P 500 – bidding up GRMN stock aggressively doesn’t seem like a wise move. While it hasn’t given up all of its post-pandemic gains, it’s getting close. Over the trailing-year period, Garmin has hemorrhaged 40%. 17 session, GRMN stock has dropped 26% in market value. Since the opening volley of this year through the close of the Aug. Therefore, I am long-term bullish on Garmin.Īs stated above, the immediate framework for the tech company is likely to repulse many investors, particularly those averse to risk. Nevertheless, the underlying company caters to trends that have yet to materialize but may very well do so. Indeed, with sharp double-digit losses for the year, GRMN stock initially looks like a sell. At first glance, technology firm Garmin ( GRMN) – which among many other business units, specializes in GPS devices and wearable connected innovations – doesn’t appear a compelling buy.
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