Garmin Shares Plunge 4.4% Despite 22.4% Rally, Q1 EPS Seen at $1.78
Shares dropped 4.38%, significantly underperforming the S&P 500's 0.57% decline after a 22.37% rally prior to today's session. Consensus forecasts call for Q1 EPS of $1.78 (up 10.6%) on $1.69 billion revenue (up 10.4%), while full-year EPS is projected at $9.20 on $7.97 billion in sales.
1. Stock Performance
Garmin shares fell 4.38%, closing well below broader benchmarks: the S&P 500 lost 0.57%, the Dow declined 1.61% and the Nasdaq slipped 0.26%. The stock had outpaced both its sector and the S&P 500 with a 22.37% gain prior to today.
2. Q1 Earnings Outlook
Analysts project first-quarter earnings of $1.78 per share, a 10.56% increase year-over-year, on revenue of $1.69 billion, up 10.38% from the same period last year.
3. Analyst Revisions
EPS estimates for Garmin have been revised up by 7.33% over the past month, prompting analysts to maintain a strong buy consensus as near-term business trends improve.
4. Valuation Metrics
Garmin trades at a forward P/E of 27.31 compared with the Electronics-Miscellaneous industry average of 27.13 and carries a PEG ratio of 3.08 versus the industry's 1.87, while its segment ranks in the top 13% of the Computer & Technology sector.