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Valued at a market cap of $41.4 billion, Garmin Ltd. (GRMN) is an original equipment manufacturer of navigation and communication equipment that incorporates the global positioning system (GPS)-based technology. The Schaffhausen, Switzerland-based company's diverse portfolio of handheld, portable, and fixed-mount GPS-enabled devices provides geographical location and navigation data using the GPS satellite system. It is expected to announce its fiscal Q4 earnings results before the market opens on Wednesday, Feb. 19.

Ahead of this event, analysts project the tech company to report a profit of $1.89 per share, up 9.9% from $1.72 per share in the year-ago quarter. The company’s earnings surprise history is promising. It has beaten Wall Street's earnings estimates in each of the last four quarters. In Q3, GRMN’s adjusted EPS of $1.99 sailed past the forecasted figure by a notable margin of 36.3%.

For fiscal 2024, analysts expect Garmin to report an EPS of $7.01, up 25.4% from a profit of $5.59 in fiscal 2023.

Shares of GRMN have rallied 73.6% over the past 52 weeks, significantly outpacing both the S&P 500 Index's ($SPX) 25% return and the Technology Select Sector SPDR Fund’s (XLK) 17.9% return over the same time frame.

On Oct. 30, shares of Garmin skyrocketed 23.3% after releasing strong Q3 earnings results. The company reported record revenue of $1.6 billion, reflecting a 24% year-over-year increase. Robust revenue growth across all of its business segments, particularly in the Fitness, Outdoor, and Marine segments, contributed to this noteworthy top-line rise.

Moreover, a 300 bps year-over-year gross margin expansion fueled by lower product costs and favorable product mix and a 640 bps operating margin growth led to a notable 41.1% yearly increase in adjusted EPS to $1.99. Both the top and bottom-line figures outpaced the consensus estimates by a significant margin. Noting its strong Q3 performance, the company raised its full-year 2024 revenue guidance to $6.12 billion and also raised its pro forma EPS forecast to $6.85.

Yet, Wall Street analysts are cautious about Garmin’s stock, with a "Hold" rating overall. Among six analysts covering the stock, one recommends a "Strong Buy," two suggest “Hold,” one gives a “Moderate Sell,” and two indicate “Strong Sell.” As of writing, the company is trading above its mean price target of $196.80.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

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