Why Did Garmin Stock Soar Today?

Investors are sending Garmin (NYSE: GRMN) shares soaring contiguous aft the institution reported a grounds year. Not lone did the shaper of GPS-enabled wearables and devices decorativeness the twelvemonth with grounds gross crossed each 5 segments, but absorption besides predicts much to come.

The coagulated study sent shares up implicit 18% earlier the banal settled 16.4% higher arsenic of 9:51 a.m. ET.

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Fourth-quarter gross jumped 17% twelvemonth implicit year, helping the institution turn income by 15% for the full year. That compares with the company's archetypal guidance of 9% gross maturation successful 2025. Garmin again told investors to expect 9% gross maturation this year. Considering the overachievement successful 2025, however, that again mightiness beryllium excessively conservative.

The fittingness class led fourth-quarter gross maturation astatine 42%. All segments are doing good for the company, which helps explicate capitalist enthusiasm today. There could beryllium much country for the banal to determination higher, too. Even with today's jump, Garmin's price-to-earnings (P/E) ratio based connected 2026 expectations is nether 27. If 1 assumes absorption is again being conservative, that metric volition proceed to driblet passim 2026.

Investors tin beryllium diligent and cod much income on the way. The institution is recommending a 17% dividend summation for this year. Garmin besides established a new, $500 cardinal stock repurchase authorization. That replaces the existing $300 cardinal program that had conscionable $56 cardinal remaining. The institution is besides sitting connected a fortress-like equilibrium sheet, with implicit $4 cardinal successful currency and equivalents and nary debt.

It's not hard to spot wherefore the banal is soaring today.

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