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Garmin Takes Over Active Corp to Expand Marine Offerings


Worldwide provider of navigation, communications and information devices, Garmin Ltd. GRMN recently acquired Active Corporation, a developer of leading electronic marine database. However, the financial terms of the purchase were not disclosed.

Japan-based Active Corporation is a developer of crowdsourcing boating platform popularly known as ActiveCaptain.

ActiveCaptain is an electronic marine database. The data pertains to the real-time information about marinas, anchorages, local points of interest, and marine hazards. The information helps the mariners to make their voyages hassle free. The database can be accessed using a web browser or a variety of mobile applications. It has a user base of more than 250,000 users.

Post acquisition, the founders and employees of ActiveCaptain, Karen and Jeffrey Siegel, will work with Garmin.

Cliff Pemble, the president and CEO of Garmin said, “There is really nothing else out there that compares to the depth and breadth of the ActiveCaptain database”. “Mariners rely on ActiveCaptain to make their voyages better informed and more enjoyable, and we are delighted to add this technology to the Garmin portfolio.”

Coming to the price performance, the stock has underperformed the Zacks Electronics Miscellaneous Products industry in the last one year. It has returned 30.8% compared with the industry’s gain of 35.8%.

First-Quarter Results

In the recently reported first quarter, Garmin reported robust results with both earnings and revenues surpassing the Zacks Consensus Estimate. Earnings of 52 cents per share surpassed the consensus mark by 15.6% and revenues of $638.5 million by 0.8%.

Also, revenues of $638.5 million increased 2.3% year over year. The increase was backed by higher demand across marine, outdoor, fitness and aviation segments.

Bottom Line

Established in 1989, Garmin has built a reputation in the consumer and professional navigational space. It is one of the leading providers of navigation devices in outdoor/fitness, aviation, marine and automotive markets. A superior portfolio of new products across segments, secular drivers in the aviation market, market share gains in the marine market and contribution from acquisitions, are its other positives.

It goes without saying that the company is on the right track with regard to product offerings and expansion plans.

Garmin Ltd. Price and Consensus

Garmin Ltd. Price and Consensus | Garmin Ltd. Quote

Zacks Rank and Stocks to Consider

Garmin carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the industry are Lam Research LRCX and KLA-Tencor KLAC, each sporting a Zacks Rank #1 (Strong Buy), while Applied Materials AMAT, carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lam Research delivered a positive earnings surprise of 6.14%, on average, in the trailing four quarters.

KLA-Tencor delivered a positive earnings surprise of 11.55%, on average, in the last four quarters.

Applied Materials delivered a positive earnings surprise of 3.92%, on average, in the trailing four quarters.

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