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Tacx helps boost Garmin's third-quarter earnings 15%

Published October 30, 2019

OLATHE, Kan. (BRAIN) — Garmin Ltd. reported Wednesday that third-quarter revenue increased 15% over the prior year's quarter with its fitness sales — boosted by the Tacx acquisition — growing 28%.

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Revenue was $934 million at the end of the quarter on Sept. 28. Fitness sales, which include cycling products, accounted for $243 million. Growth was helped by the recent release of the Tacx NEO 2T smart trainer and a large-scale updating of wearables. The Tacx acquisition closed during the second quarter, and Garmin began distribution in June.

"Tacx is meeting our expectations, so they're right in line with what we expected," said Cliff Pemble, Garmin president and chief executive officer.

Fitness revenue growth estimates have been raised from 13% to 16%.

"We delivered another quarter of strong growth thanks to our lineup of great products in every market segment," Pemble said. "We are well positioned for the remainder of 2019 and are raising our revenue and EPS guidance to reflect our strong performance."

Quarterly earnings were $1.27 a share, 27% over the prior year's quarter ($1).

The aviation division sales also grew 28% with outdoor (23%) and marine (9%) following. The auto division experienced a 17% drop.

The third-quarter growth follows Garmin posting record second-quarter revenue of $955 million, an increase of 7% over the prior year's quarter.

Gamin stock opened Wednesday at $93.85 a share, up from $87.91.

Garmin is now distributing products from Tacx, which it bought earlier this year.
Topics associated with this article: Earnings/Financial Reports

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