Garmin recently delivered another exciting earnings report to investors.
Garmin doesn’t always get the recognition it deserves. The wearables market is becoming an increasingly crowded space, but Garmin has managed to hold its own against strong competitors.
For the last few years, Garmin has posted record sales and its stock is up more than 20% year to date. And just last week, the company released its second-quarter earnings report which showed continued progress toward the company’s sales goals.
Garmin also increased its guidance for the rest of 2019. Here are a few key trends that the company stands to benefit from in the coming year.
Garmin Continues to Diversify Its Business
Most people know Garmin for its wearable fitness trackers, but the company has expanded into other areas as well. The company does a good job of responding quickly to changing consumer demands. The company also sells auto navigation products, and this used to be its core product line.
However, the demand for these products has steadily decreased so Garmin shifted its focus to other areas. Most recently, the company has focused more on its aviation and marine divisions, which have picked up the slack from its dwindling automotive sales.
Garmin Fitness Trackers Aren’t Going Anywhere
Of course, Garmin’s fitness trackers aren’t going away anytime soon. Sales of this division are holding steady, in spite of competition from Apple.
One of the benefits of Garmin watches it that they appeal to a very niche audience. Long-distance runners and hikers prefer the company’s watches because they’re a more accurate and durable product.
The Company’s Aviation Business Is Doing Well
If you look at the company’s revenue over the past year, you can see that its aviation business continues to grow at a steady pace. Last year, the company’s marine and aviation business accounted for 22% of its sales. This year, the figure increased to 25%.
But the company’s aviation business is what’s truly exciting. Aviation is a less competitive market, and Garmin has increased its sales by 20% from a year earlier.
All in all, the company is doing a good job capitalizing on industry trends, and it has a track record of strong management. Steady revenue growth from Garmin seems likely in the coming years.
