By (Reuters) – Garmin (NYSE:GRMN) raised its full-year profit and revenue forecasts on Wednesday, expecting a slew of launches of wearable products ahead of the holiday season to drive demand further, sending the company’s shares up 9.5% in premarket trading.
Garmin’s fitness segment, its second-largest by revenue, has seen resilient growth in the first half of the year, primarily driven by an uptick in demand for wearables, allaying fears of sluggish consumer spending.
That continued in the third quarter, with the segment’s revenue of $463.9 million topping analysts’ estimates of $396.1 million, according to data compiled by LSEG.
The company also noted positive trends in the number of downloads of its Garmin Connect app, which pairs with its wearables, and in monthly active users (MAUs) in the quarter.
Garmin has launched new wearables ahead of the crucial holiday shopping period, continuing to lean on its diverse product portfolio to ride out weaker spending by consumers and businesses in an uncertain economy.
The company now expects full-year revenue of about $6.12 billion, compared with an earlier forecast of about $5.95 billion.
On a pro-forma basis, it now expects to earn a profit of $6.85 per share, higher than its previous projection of $6.00.
For the quarter ended Sept. 30, it posted revenue of $1.59 billion, whereas analysts were expecting $1.44 billion, according to data compiled by LSEG.
Its profit of $1.99 per share, on a pro-forma basis, was also above analysts’ expectations of $1.44.