Garmin's strong Q4 results and guidance show growth in wearables market

From Nasdaq: 2025-02-21 07:39:00

Garmin’s Q4 results and 2025 guidance drove shares to new highs, with strong performance in fitness and outdoor segments due to high double-digit growth fueled by demand for wearables. The wearables market is projected to be worth over $70 billion by 2024, with a mid-teens or higher CAGR through the next decade.

Competitors like Apple, Meta Platforms, Logitech, and Ambarella are well-positioned for growth in 2025. Apple’s revenue is expected to accelerate with new product launches and AI. Meta is focusing on advancing virtual reality with Ray-Ban smart glasses. Logitech offers a wide range of digital experience products, while Ambarella’s imaging technology is used in portable and wearable applications.

Garmin’s solid Q4 performance saw net revenue increase by 23%, driven by gains in fitness, outdoor, aviation, marine, and automotive OEM segments. Adjusted earnings are up 40% from the prior year, with high-single-digit revenue growth and EPS forecasted for 2025. The company also plans to increase dividends by 20% pending board approval.

Despite resistance at all-time highs, Garmin’s stock set new records, breaking out of a consolidation range and indicating continued uptrend. Institutional activity spiked in Q1, with buying volume surpassing sellers significantly. The company’s dividend yield is near 1.25% and expected to grow, backed by a strong balance sheet and earnings outlook.



Read more at Nasdaq: Garmin’s Growth Signals Wearables Surge: Stocks to Watch