Garmin Beats Q1 Expectations as Fitness Segment Surges, Morgan Stanley Says

MT Newswires Live04-30

Garmin (GRMN) posted modestly better-than-expected Q1 results, with the fitness segment again standing out, Morgan Stanley said Wednesday in a report.

The fitness business delivered "outsized growth," with revenue acceleration at an 11-year high and gross margins expanding by 470 basis points, the report said.

Garmin's unchanged full-year outlook is "typical this early in the year," with room for estimates to move higher, Morgan Stanley said. Management also does not expect a deterioration in high-end consumer spending, with demand remaining strong and resilient to geopolitical tensions, the report said.

While inflation in component costs is expected to have only a small effect this year, Morgan Stanley said it will likely become a headwind in 2027.

The firm raised its 2026 EPS estimate to $9.80 from $9.50 on better-than-expected profitability. Its 2027 EPS forecast is now $10.36, down 1%, partly reflecting expectations for higher component costs next year.

Morgan Stanley lowered its price target on Garmin stock to $249 from $252 and maintained its equal-weight rating.

Price: 249.33, Change: -3.75, Percent Change: -1.48

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment