Garmin's stock soared on Wednesday after the navigation company revealed plans for a dividend increase following a successful fourth quarter.
Dividend Hike Proposal
During the upcoming annual shareholder meeting on June 7, Garmin's board intends to propose a cash dividend of $ per share, payable in four equal installments of 75 cents each. Currently, the company pays a quarterly dividend of 73 cents.
In addition to the dividend hike, Garmin's board has approved a share repurchase program of up to $300 million through December 2026.
Strong Q4 Results
Garmin reported fourth-quarter earnings of $1.72 per share on revenue of $1.48 billion, surpassing analysts' expectations of $1.40 per share and $1.41 billion in revenue, as per FactSet.
Positive Outlook for 2024
Looking ahead to 2024, Garmin anticipates revenue of $5.75 billion, exceeding the analysts' consensus forecast of $5.54 billion.
Chief Executive Cliff Pemble expressed optimism for the year, stating, "We are entering 2024 with strong momentum from our robust product lineup and have many product launches planned during the year."
Stock Performance
Following these promising announcements, Garmin's shares surged by 5% in premarket trading to $128.89 on Wednesday, showcasing a 26% growth over the last 12 months.
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