Garmin Outperforms Market with Strong Growth and Profitability

Garmin has surpassed market returns with a 19% sales growth in 2024, showcasing strong profitability from varied product categories. This solid performance could indicate continued success in the growth stock sector.

Date: 08-01-2025

AI Rating: 7

Strong Performance in Sales Growth

Garmin has achieved significant sales growth, rising 19% overall in 2024. This increase is attributed to expansions in various divisions such as fitness, marine, and outdoor sectors. The company's ability to pivot from its reliance on automotive GPS has positioned it well for sustained growth.

Operating Profit Margin Advances

Garmin's operating profit margin has improved, expanding from 20% to 24% of sales year-over-year. While not as high as competitors like Apple, this margin reflects strong profitability and indicates the company's effective management and operational efficiency. Continued improvement in this area will be crucial for maintaining investor confidence and stock price momentum.

Anticipated Earnings per Share and Projections

Looking ahead, analysts estimate Garmin's earnings could reach approximately $7 per share. Additionally, there are expectations for continued sales growth of about 10% in 2025 following an impressive 18% rise in 2024. This positive outlook is essential for investors considering the stock's valuation at 30 times expected earnings.

Overall Investment Outlook

The combination of Garmin's diversified product portfolio, consistent sales growth, and improving profit margins suggests a potential for continued positive performance. Investors are advised to monitor Garmin's upcoming fiscal fourth-quarter earnings in February, as the results may further influence stock price trends.

Stocks: GRMN