Garmin (NYSE: GRMN) — widely recognized for its GPS technology — recently announced its Q4 earnings, reporting $2.41 per share on revenue of $1.82 billion. These results surpassed analyst expectations of $2.05 per share and $1.7 billion in sales. Additionally, the company’s forward guidance exceeded projections, driving its stock to an all-time high of approximately $240.
Since the beginning of 2024, GRMN stock has soared 91%, significantly outpacing the S&P 500’s 28% rise. The company’s improving profitability has contributed to its recent stock surge. However, for investors seeking steady gains with reduced volatility, the High-Quality Portfolio has delivered over 91% returns since inception, outperforming the S&P 500.
Wearables Drive 23% Revenue Growth
Garmin’s Q4 revenue of $1.82 billion reflected a 23% year-over-year increase. The Fitness segment led the growth, posting a 31% jump to $539 million, fueled by strong demand for wearables like the Lily 2 Active GPS watch. The Outdoor segment also performed well, with a 29% increase in revenue to $629 million, driven by new product launches including the Fenix 8, Enduro 3, Approach R50, and Descent X50i.
Other segments also experienced growth: Aviation revenue climbed 9% to $237 million, boosted by new G3000 avionics partnerships. Marine sales edged up 5% to $251 million, while Auto OEM revenue surged 30% to $166 million, thanks to increased adoption of Garmin’s Unified Cabin domain controller solution.
Expanding Margins Drive 40% Earnings Growth
Garmin demonstrated strong financial performance in Q4. Its operating margin expanded by 530 basis points to 28.3%, contributing to a 40% increase in earnings per share, which rose to $2.41.
Optimistic 2025 Outlook: 8% Revenue Growth Projected
Looking ahead to 2025, Garmin remains optimistic, expecting to leverage recent and upcoming product launches. The company forecasts annual revenue of $6.8 billion, an 8% increase, and adjusted earnings per share of $7.80, reflecting a 6% rise. These estimates slightly exceed Wall Street’s projections of $6.7 billion in revenue and $7.77 in earnings per share.
GRMN Stock: Can You Handle the Volatility?
Following its Q4 earnings announcement, GRMN stock jumped 13%. Garmin’s stock has historically been volatile, showing inconsistent returns over the last four years. Annual performance fluctuated from a 15% gain in 2021 to a 30% decline in 2022, followed by a 43% increase in 2023 and a 63% surge in 2024.
By contrast, the High-Quality Portfolio has demonstrated steadier performance. Its 30 carefully selected stocks have consistently outperformed the S&P 500 with lower volatility, as evident in the HQ Portfolio performance metrics.
Is GRMN Stock a Buy at $230?
Amid uncertainties surrounding interest rate cuts and global trade tensions, investors are wondering whether GRMN will follow its 2021-2022 underperformance or continue its recent strong trajectory. From a valuation perspective, the stock appears fully priced.
Currently trading at 31x trailing earnings of $7.39 per share, GRMN’s valuation is about 40% higher than its five-year average P/E ratio of 22x. While Garmin’s robust Q4 results and strong 2025 outlook justify some of its valuation premium, investors may find better entry points by waiting for a pullback.
To better understand how Garmin’s competitors compare, explore additional insights across industries with Peer Comparisons.
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