Can GRMN sustain its earnings momentum?

**Garmin's (GRMN) ability to sustain its earnings momentum appears promising**, considering the following points: 1. **Consistent Growth History**: Garmin has demonstrated a history of earnings growth, with an average annual rate of 7.3%. This consistent performance indicates a strong business model and market positioning. 2. **Strong Segment Performance**: The company's segments, particularly Fitness and Outdoor, have shown robust performance. The Fitness segment has seen a significant rise in demand for wearables, while the Outdoor segment has benefited from strong sales in adventure watches. 3. **Upcoming Dividend Increase**: Garmin has announced a dividend increase, reflecting confidence in its earnings stability and ability to return value to shareholders. This move is also indicative of a sustainable earnings model. |code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |GRMN|GRMN.N|Garmin|2024 Q1|1.381649E9|2.75961E8|1.43|169| |GRMN|GRMN.N|Garmin|2024 Q2|1.506671E9|3.0063E8|1.56|169| |GRMN|GRMN.N|Garmin|2024 Q3|1.586022E9|3.99111E8|2.07|169| |GRMN|GRMN.N|Garmin|2024 Q4|1.822561E9|4.35733E8||169| |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |GRMN|GRMN.N|Garmin|2024 Q1|36.3935609187108|20.413116685723846|36.190476190476176|169| |GRMN|GRMN.N|Garmin|2024 Q2|4.407530761723837|14.073039343728588|4.0000000000000036|169| |GRMN|GRMN.N|Garmin|2024 Q3|55.14941125706044|24.147437518150245|54.47761194029849|169| |GRMN|GRMN.N|Garmin|2024 Q4|-19.62529075290476|22.93826445985534||169| 4. **Analyst Optimism**: The consensus rating for Garmin is a "Strong Buy", and analysts have revised their earnings expectations upward. This optimism is supported by Garmin's track record of exceeding earnings expectations. 5. **Market Position and Innovation**: Garmin's diverse product portfolio and continuous innovation in GPS technology position it well to capitalize on emerging market opportunities. The company's vertically integrated manufacturing model is also a competitive advantage. 6. **Financial Health**: Garmin's robust financial health, with a return on equity of 18% and net margins of 22.4%, indicates efficient use of equity and effective cost management. The company's gross margin expanded to 58.7% in the last twelve months, reflecting operational efficiency. 7. **Market Outperformance**: Garmin has outperformed the Dow Jones Industrials Average in both the last three months and the past year, suggesting a strong market presence. In conclusion, Garmin's sustained earnings momentum appears likely due to its historical growth trajectory, strong segment performance, upcoming dividend increase, analyst optimism, market position, financial health, and market outperformance. These factors collectively support the company's ability to sustain its earnings momentum.