Garmin (GRMN) to Report Q2 Earnings: What’s in the Offing?

Garmin Ltd. GRMN is scheduled to report second-quarter 2020 results on Jul 29.

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $625.5 million, indicating a decline of 34.5% from the prior-year quarter.

Further, the Zacks Consensus Estimate for earnings stands at 38 cents per share, suggesting a decline of 67.2% from the year-ago reported figure.

Notably, the company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 22.11%.

Garmin Ltd. Price and EPS Surprise

Garmin Ltd. Price and EPS Surprise

Garmin Ltd. price-eps-surprise | Garmin Ltd. Quote

Factors to Note

Garmin’s portfolio strength is likely to have benefited its second-quarter performance.

Expanding wearable portfolio might have aided the performance of the company’s fitness segment in the to-be-reported quarter. Moreover, solid demand for Tacx indoor bike trainers, owing to stay-at-home restriction on account of the ongoing pandemic, is likely to have contributed to the second-quarter performance.

Further, well-performing chartplotters and advanced sonar technology may have benefited the company’s Marine segment in the to-be-reported quarter.

Additionally, robust adventure watches are expected to have contributed to the performance of Garmin’s outdoor segment in the second quarter. However, sluggishness in the outdoor activities due to coronavirus pandemic may get reflected in the segment’s second-quarter results.

Further, strong momentum across ADS-B category and retrofit systems are anticipated to have aided the aviation segment in the to-be-reported quarter. However, softness in OEM category and aviation industry owing to coronavirus-led disruptions might have weighed on the to-be-reported quarter’s performance.

Also, weak momentum across top-performing OEM products and sluggish consumer demand are likely to have hurt the performance of the company’s auto segment in the quarter under review.

Nevertheless, the company’s strong efforts toward boosting its mix of online sales during this pandemic situation are expected to get reflected in the second-quarter results.

What Our Model Says

Our proven model does not conclusively predicts an earnings beat for Garmin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Garmin has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are some stocks you may consider, as our proven model shows that thesehave the right combination of elements to post an earnings beat this quarter.

JD.com, Inc. JD has an Earnings ESP of +13.79% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Wayfair, Inc. W has an Earnings ESP of +43.47% and a Zacks Rank of 2.

Etsy, Inc. ETSY has an Earnings ESP of +10.98% and a Zacks Rank #2.

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