Garmin CEO cites revenue growth from cycling products and advanced wearables after Q2 success

Garmin reported a record revenue of $1.3 billion and a GAAP EPS of $1.64.
Written by Jonathan Greig, Contributor

Garmin CEO Clifton Albert Pemble attributed the company's success in Q2 to growth in cycling products and advanced wearables during an earnings call on Wednesday

Pemble said the company's consolidated revenue increased 53% over the prior year and exceeded $1.3 billion, with an operating income of $371 million and a GAAP EPS of $1.64.. The CEO added that the company expected a revenue of $4.9 billion this year. 

Revenue in the fitness segment grew by 40% to $413 million, driven in part by interest in the two running watches that were launched in Q2 in honor of Global Running Day as well as updates to other watches

"The Forerunner 945 LTE is noteworthy because it includes built-in connectivity and leverages the safety monitoring capability of our recent GEOS acquisition. We also launched the Venu 2 smartwatch in 2 sizes, which will enhance the appeal of these devices across a broader range of customers," Pemble said. 

"Moving to outdoor, revenue increased 57% to $323 million, with growth across all categories, led by adventure watches. During the quarter, we launched our smallest dive watch, the Descent Mk2S, featuring multiple dive modes, multisport training and smartwatch features for everyday use."

The CEO said they were raising their revenue growth estimates for both categories to 17%.

Garmin pulled in $181 million from its aviation business, noting that its Autoland autonomous system won an award for its work in the fields of aeronautics or astronautics. According to Pemble, Autoland is the "first certified autonomous system designed to activate during an emergency to safely fly and land the aircraft without human intervention."

Garmin also bought aircraft performance software company AeroData in May, expanding its footprint in the commercial aircraft industry. 

Pemble said the company's revenue in the marine sector grew by 66% to $262 million and expectations are that demand will boost revenues 27% through the rest of the year. The company saw similar growth in the auto category thanks to the launch of Garmin's first dash cam with Live View monitoring and premium subscription-based cloud storage.

In May, Garmin announced a pact with Lumen that will see further integration of health and activity data from Garmin with the metabolic data that comes from the Lumen device and app.

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