Garmin shares up on higher profits

Garmin shares up on higher profits

Shares were up 1.5 percent.

Shares in Garmin were up 1.5 percent after the group reported better than expected quarterly profits.

Sales in the group’s fitness products increased 24.3 percent to $225.1 million following the growing demand in smartwatches and other wearable devices.

Shares were up 1.5 percent at $63.40 (£48.30) on Wednesday. The stock price has increased by 27 percent over the past year.

Joe Wittine, the Longbow Research analyst, wrote in a note: “We believe the quarter will go a long way toward establishing confidence in Garmin’s fitness business, having clear differentiation versus mainstream fitness tracker and mainstream smartwatch competitors.”

Garmin’s sales in its outdoor segment also rose about four percent to $201.6 million.

The group’s total revenue for the second quarter was $894 million, an increase of eight percent over the previous year.

Garmin has raised its full-year forecast. The group now expects a total revenue for this year at $3.3 billion. This is an increase of $100 million for its previous forecast.

Shares in the group (NASDAQ: GRMN) are currently trading 3.28 percent at 64.50 (1007GMT)