OLATHE, Kan. - Garmin Ltd . (NYSE: NYSE:GRMN), known for its wide array of GPS navigation and wearable technology, announced today the acquisition of Lumishore, a company specializing in the design and manufacture of high-performance LED lighting systems for the marine industry. The financial details of the transaction have not been disclosed.
Lumishore, recognized for its premium LED lighting solutions, has been a part of the boating experience for over 15 years, providing lighting systems for a range of vessels, from small boats to superyachts. The acquisition is expected to enhance Garmin's marine product portfolio and allow for integrated lighting systems across various types of vessels.
Jarrod Seymour, Garmin's Vice President and Marine Segment Leader, commented on the synergy between the two companies, stating that Lumishore's technology leadership in LED lighting is a strategic fit for Garmin's focus on innovation and integrated marine solutions. He expressed enthusiasm about delivering advanced lighting technology to customers globally.
Eifrion Evans, Founder and CEO of Lumishore, echoed Seymour's sentiments, highlighting the shared passion for the marine industry that both companies hold. He anticipates a bright future with Garmin, aiming to elevate the lighting experience for customers.
Lumishore, headquartered in Swansea, United Kingdom, with a distribution center in Sarasota, Florida, will see its team join the global Garmin workforce. The integration is expected to be seamless, given Lumishore's established reputation in the marine lighting market.
Garmin, with its diverse product range in sectors including aviation, automotive, fitness, and outdoor markets, aims to continue its tradition of innovation with this latest expansion into marine LED lighting. This acquisition is part of Garmin's ongoing efforts to enhance its marine division and offer comprehensive solutions for vessel owners.
The information regarding the acquisition is based on a press release statement from Garmin Ltd.
In other recent news, Garmin Ltd. reported a 14% increase in consolidated revenue for the second quarter of 2024, amounting to $1.51 billion. This growth led to an upward revision of full-year revenue guidance to approximately $5.95 billion. JPMorgan (NYSE:JPM) maintains a Neutral stance on Garmin, with a consistent price target of $185.00 based on Garmin Connect's performance, which showed a slight month-over-month decline in downloads for September but continued a trend of year-over-year growth. On the contrary, Barclays (LON:BARC) downgraded Garmin from Overweight to Equal Weight and further to Underweight, reducing its price target from $181 to $133 due to concerns over the company's valuation and limited visibility into future performance. Furthermore, Morgan Stanley (NYSE:MS) downgraded Garmin's stock from Equalweight to Underweight, lowering the price target to $139, citing a potential slowdown in revenue growth and contraction in gross margins for the upcoming year. Meanwhile, Garmin International, a unit of Garmin Ltd., recently received certification for its G5000 integrated flight deck for use in Cessna Citation XLS+ and XLS Gen2 business jets. These are among the recent developments for Garmin Ltd.
InvestingPro Insights
Garmin's acquisition of Lumishore aligns with the company's strong financial position and growth trajectory. According to InvestingPro data, Garmin boasts a market capitalization of $32.0 billion and has demonstrated impressive revenue growth of 14.92% over the last twelve months as of Q2 2024. This financial strength supports the company's ability to make strategic acquisitions like Lumishore to expand its marine product portfolio.
InvestingPro Tips highlight Garmin's solid financial foundation, noting that the company "holds more cash than debt on its balance sheet" and "liquid assets exceed short-term obligations." These factors provide Garmin with the financial flexibility to pursue growth opportunities in the marine sector and beyond.
Furthermore, Garmin's commitment to shareholder value is evident in its dividend history. An InvestingPro Tip reveals that Garmin "has raised its dividend for 7 consecutive years" and "has maintained dividend payments for 22 consecutive years." This consistent dividend growth, coupled with a current dividend yield of 1.8%, may appeal to income-focused investors interested in the company's long-term prospects.
The acquisition of Lumishore is likely to contribute to Garmin's already strong performance, as evidenced by its 64.36% price total return over the past year. With a P/E ratio of 23.19 and a PEG ratio of 0.61, Garmin appears to be trading at reasonable valuations considering its growth potential.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips on Garmin, providing deeper insights into the company's financial health and market position.
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