OLATHE, Kan. (BRAIN) — Garmin Ltd. on Wednesday reported an 8 percent increase in third-quarter revenue to $810 million, with its marine, aviation, fitness and outdoor segments growing a combined 16 percent compared with a year earlier and contributing 80 percent of total revenue.
The company's automotive segment continued a long-running decline, down 16 percent in revenue to $165.2 million as demand for personal navigation devices wanes.
"During the third quarter, we continued our strong performance achieving double-digit revenue growth in four of our five segments and double-digit growth of consolidated operating income," president and CEO Cliff Pemble said. "We are well positioned for the remainder of 2018 with a solid lineup of products and are raising our EPS (earnings per share) guidance to reflect our strong performance."
That guidance rose from a previously stated $3.30 to $3.45 per share, while overall 2018 revenue guidance remained flat at $3.3 billion.
The company's fitness segment, which includes cycling products, saw revenue rise by 14 percent to $190.1 million, driven largely by wearable devices like activity trackers and smart watches. Garmin officials did not call out cycling products specifically during an earnings call Wednesday, but stated in a release that the company continues to "pursue opportunities for wearables and cycling within the fitness segment."
Garmin also stated that it shipped its 2 millionth product during the quarter, and that the expansion of its campus in Olathe, Kansas, went into operation, more than doubling its manufacturing capacity for aviation products.
Aviation revenue rose 17 percent to $146.4 million during the quarter; outdoor revenue rose 13 percent to $209.4 million; and marine revenue rose 28 percent to $98.8 million.
Overall gross margin rose to 59.4 percent, compared with 58.2 percent a year earlier.
