Garmin (GRMN) Reliance on International Sales: What Investors Need to Know

Did you analyze how Garmin (GRMN) fared in its international operations for the quarter ending June 2025? Given the widespread global presence of this maker of personal navigation devices, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.In our recent assessment of GRMN's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.For the quarter, the company's total revenue amounted to $1.81 billion, experiencing an increase of 20.4% year over year. Next, we'll explore the breakdown of GRMN's international revenue to understand the importance of its overseas business operations.Unveiling Trends in GRMN's International RevenuesDuring the quarter, EMEA contributed $677.4 million in revenue, making up 37.3% of the total revenue. When compared to the consensus estimate of $596.6 million, this meant a surprise of +13.54%. Looking back, EMEA contributed $568.95 million, or 37.1%, in the previous quarter, and $542.02 million, or 36%, in the same quarter of the previous year.APAC generated $259.15 million in revenues for the company in the last quarter, constituting 14.3% of the total. This represented a surprise of -2.58% compared to the $266.01 million projected by Wall Street analysts. Comparatively, in the previous quarter, APAC accounted for $220.41 million (14.4%), and in the year-ago quarter, it contributed $224.08 million (14.9%) to the total revenue.Projected Revenues in Foreign MarketsThe current fiscal quarter's total revenue for Garmin, as projected by Wall Street analysts, is expected to reach $1.67 billion, reflecting an increase of 5% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: EMEA is anticipated to contribute 35.1% or $584.42 million, and APAC 16.2% or $269.68 million.For the entire year, the company's total revenue is forecasted to be $6.92 billion, which is an improvement of 9.9% from the previous year. The revenue contributions from different regions are expected as follows: EMEA will contribute 35.2% ($2.44 billion), and APAC 15.2% ($1.05 billion) to the total revenue.The Bottom LineRelying on international markets for revenues, Garmin faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.Currently, Garmin holds a Zacks Rank #2 (Buy), signifying its potential to outperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .Assessing Garmin's Stock Price Movement in Recent TimesOver the past month, the stock has seen an increase of 1.8% in its value, whereas the Zacks S&P 500 composite has posted an increase of 0.6%. The Zacks Computer and Technology sector, Garmin's industry group, has ascended 3.4% over the identical span. In the past three months, there's been an increase of 14.3% in the company's stock price, against a rise of 11.7% in the S&P 500 index. The broader sector has increased by 20.2% during this interval.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Garmin Ltd. (GRMN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks