Garmin (GRMN) Boosts Aviation Segment With Latest Initiative

Garmin GRMN announced the availability of Garmin Navigation Database for a variety of Garmin avionics including both WAAS GNS and non-WAAS GNS navigators.

The Garmin Navigation Database has the ability to incorporate all the latest navigation information, instrument procedures, frequencies, airport data and more, making it eligible to aid both VFR and IFR flights.

The underlined database options include single navigation database updates, annual subscriptions, or a complete device bundle with navigation, terrain and obstacle features. These options help pilots in simplifying the updating process.

Further, pilots can avail a significant amount of savings by opting for the OnePak subscription, which combines the Garmin GNS non-WAAS Navigation Database with other essential database subscriptions.

The recent move is expected to help the company expand its reach to all types of GNS owners.

This, in turn, is likely to contribute well to top-line growth in the near term.

Garmin Ltd. Price and Consensus

Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote

Aviation Efforts

Apart from the latest effort, Garmin also made its engine monitoring capability available for select Pilatus PC-12/45 and PC-12/47 aircraft, with the addition of the TXi Engine Indication System display.

Additionally, the company introduced TXi- engine indication system support for twin-turboprop aircraft like Cessna 425, the King Air 90 series, and select Pratt & Whitney PT6A turboprop-powered Piper Cheyenne I and II.

Further, Garmin expanded the portfolio of aircraft for flight test development of the GFC 500 autopilot with the addition of the first light twin aircraft named the PA-30/39 Twin Comanche.

Wrapping Up

We believe the abovementioned efforts will continue to aid the company in strengthening its presence in the aviation end market.

Further, the expanding product portfolio will help Garmin in winning more customers. Recently, it signed a multi-year agreement with Heart Aerospace, wherein the latter chose the Garmin G3000 integrated flight deck for the ES-19 electric airliner.

Garmin’s portfolio strength will further help it in achieving more certifications. GRMN recently received a Supplemental Type Certification from FAA for GFC 500 autopilot use in select Robertson STOL (short takeoff or landing) equipped Cessna 206 models and Piper Twin Comanche PA-30/39 models.

All these advancements are expected to contribute well to GRMN’s aviation segment revenues. The aviation segment generated $177.6 million in sales, accounting for 12.8% of fourth-quarter 2021 total net sales. The metric also increased 13% on a year-over-year basis.

Zacks Rank & Stocks to Consider

Currently, Garmin carries a Zacks Rank #3 (Hold).

Investors interested in the broader technology sector can consider stocks like Advanced Micro Devices AMD, Arrow Electronics ARW and Analog Devices ADI. While Advanced Micro Devices and Arrow Electronics sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Micro Devices has gained 51.8% in the past year. The long-term earnings growth rate for AMD is currently projected at 29.1%.

Arrow Electronics has gained 8.7% in the past year. ARW’s long-term earnings growth rate is currently projected at 3.1%.

Analog Devices has gained 7.4% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.3%.

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