Garmin Stock Climbs After Strong Fourth Quarter and Dividend Hike Proposal
Garmin stock experienced a surge on Wednesday after the navigation company announced plans to increase its dividend following a successful fourth quarter. The stock, which was the top performer in the S&P 500 for the day, has seen a remarkable 36% increase over the past year.
In addition to the dividend news, Garmin reported fourth-quarter earnings of $1.72 per share on revenue of $1.48 billion. This surpassed analysts’ predictions of $1.40 per share on revenue of $1.41 billion.
The company also provided a positive outlook for 2024, with an expected revenue of $5.75 billion, which exceeds analyst expectations of $5.54 billion.
In a statement, Garmin announced that its board intends to recommend a cash dividend of one share at its upcoming annual shareholder meeting on June 7. This dividend will be payable in four equal installments of 75 cents per share. The current quarterly dividend stands at 73 cents. Furthermore, the board has authorized the repurchase of up to $300 million of Garmin shares by December 2026.
As a result of these developments, shares of Garmin rose by 8% to reach $132.57, setting the stage for the highest close since January 2022.
Garmin’s strong performance and optimistic outlook have generated excitement among investors. Chief Executive Cliff Pemble expressed confidence in the company’s future, stating, “We are entering 2024 with strong momentum from our robust product lineup and have many product launches planned during the year.”
In conclusion, Garmin’s impressive fourth-quarter earnings, positive revenue projections, and proposed dividend hike have propelled its stock to new heights, providing investors with a promising start to the year ahead.
Analyst comment
Positive news.
As an analyst, I expect Garmin’s stock to continue climbing in the near term due to its strong fourth-quarter performance, positive revenue projections, and proposed dividend hike. Investors have shown excitement and confidence in the company’s future outlook, leading to a surge in stock price.
