Longtime GPS technology specialist Garmin (GRMN 0.56%) was charting a clear path to stock price growth over the past few days. It posted first-quarter results that obliterated the modest estimates concocted by analysts, and was rewarded for doing so by an investor rush into its shares. They were on a happy rise, advancing by over 15% week to date as of Friday early morning, data compiled by S&P Global Market Intelligence reveal.
A quarter to remember
Garmin reported its latest earnings results on Wednesday, and the report was a doozy. The company managed to increase its consolidated revenue by 20% year over year to $1.38 billion, and crank generally accepted accounting principles (GAAP) net income even higher -- it rose by 37% to almost $276 million ($1.42 per share).
Those numbers were far above what prognosticators were forecasting for the quarter. Collectively, their revenue estimate was $1.25 billion, and that for net income was only $1 per share.
Garmin was once a company laser-focused on navigation products, but in a world with much competing technology it has diversified into other product categories such as fitness wearables.
Two pundits made big changes to their Garmin takes
With those far better-than-expected results came analyst price target increases. Pundits from a pair of influential banks, Morgan Stanley and Barclays, both upped their fair value estimations for Garmin stock (although neither, to be fair, is particularly bullish on the company).
Morgan Stanley's Erik Woodring now feels Garmin is worth $144 per share, quite some distance ahead of his previous $126. His peer Tim Long at Barclays has reset his price target to $166 per share, well up from his former level of $140.
