Garmin Vivoactive 5 | Image credit – PhoneArena
Garmin is a well-known name when it comes to wearables and navigation gear, so if you have ever thought about getting a smartwatch, chances are Garmin crossed your mind. The company is known for making some of the
best smartwatches and wearables, especially for running and sports, and it seems like customers are on board with that, judging by Garmin’s second-quarter 2024 results.
Garmin beats second-quarter revenue estimates
The company just released its
second-quarter results, and things are looking good. Garmin's strong portfolio and long-term deals with clients in fitness, marine, aviation, and auto OEMs have really boosted its revenue for the quarter.
Revenue from Garmin's fitness segment jumped 28% to $428.4 million this quarter, driven by high demand for advanced wearables like the Edge 1050, a premium cycling computer launched earlier this year. However, the company saw a 2% drop in interest in adventure watches.
Video credit – Garmin
Meanwhile, revenue from the auto OEM segment climbed 41% to $147.2 million, thanks mainly to a surge in demand for its domain controllers. Overall, Garmin's revenue for the second quarter soared 14% to $1.51 billion. The company now projects full-year 2024 revenue to be around $5.95 billion, up from its previous estimate of $5.75 billion.
Garmin delivered another impressive quarter of growth in both revenue and operating profit, made possible by an innovative product lineup and the strength of our diversified business model. We are pleased with our results so far in 2024, which have exceeded our expectations and give us confidence to raise our full year revenue and EPS guidance.
– Cliff Pemble, President and Chief Executive Officer of Garmin, July 2024
Garmin's report also highlights that its Garmin Health program has backed over 1,000 research studies in areas like sleep, well-being, rehabilitation, and physical activity.
The smartwatch market is expected to expand significantly in the coming years. Currently, Apple holds the top spot, but the company has faced a 20% year-over-year decline, largely due to a shrinking North American market and the fallout from
Masimo's lawsuit. This situation opens the door for other brands to capture a larger share of the market, and it looks like they might be seizing this opportunity.
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