Garmin's 7.44% Plunge Defies $620M Volume Surge as 187th-Ranked Stock Navigates Earnings Boom and Strategic Expansion

On July 30, 2025, Garmin (GRMN) closed with a 7.44% decline, despite a 130.46% surge in daily trading volume to $620 million. The stock ranked 187th in volume among equities, reflecting heightened short-term market activity. The company reported Q2 2025 earnings, posting $1.815 billion in revenue—a 20% year-over-year increase—across all business segments. Fitness revenue rose 41% to $605 million, driven by advanced wearables, while aviation and marine segments grew 14% and 10%, respectively. Gross margins expanded 150 basis points to 58.8%, and operating income surged 38% to $472 million. Pro forma EPS reached $2.17, a 37% year-over-year increase, with full-year guidance raised to $7.1 billion in revenue and $8.00 in pro forma EPS. The acquisition of MyLabs, a timing and performance analysis leader, was finalized, integrating race management technology into Garmin’s ecosystem.

Management highlighted strategic initiatives to mitigate tariff risks and currency impacts, including increased inventory levels to $1.82 billion. Free cash flow for Q2 stood at $127 million, though this marked a $91 million decline year-over-year due to inventory buildup. The fitness segment’s 25% growth forecast was raised, while outdoor and marine segments maintained 10% and 5% growth expectations, respectively. Auto OEM revenue grew 16% despite a $10 million operating loss, narrowing from the prior year. Tax efficiency improved, with an effective tax rate of 16.5%, and share repurchases of $67 million were executed under a $300 million buyback program.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to July 30, 2025, outperforming the benchmark by 137.53% in excess return. This approach achieved a compound annual growth rate of 31.89%, underscoring its effectiveness in capturing short-term momentum in high-volume equities.