Garmin Ltd. (GRMN) saw its stock surge 12.87% on Wednesday after the navigation device maker reported strong fourth-quarter and full-year 2024 results that surpassed analyst expectations across key metrics.

For the fourth quarter ended December 28, 2024, Garmin reported revenue of $1.82 billion, marking a 23% increase from the prior year and beating the consensus estimate of $1.70 billion. The company's pro forma earnings per share (EPS) of $2.41 also exceeded expectations, growing 40% year-over-year.

Garmin's strong performance was driven by robust demand across its fitness and outdoor segments, which saw revenue growth of 31% and 29%, respectively. The company attributed these gains to the successful launch of wearable devices and adventure watches.

For the full year 2024, Garmin achieved record revenue of $6.30 billion, up 20% from 2023, and a record pro forma EPS of $7.39, representing a 32% increase over the previous year. All of the company's segments posted record full-year revenue.

Looking ahead, Garmin provided an optimistic outlook for 2025, forecasting revenue of approximately $6.80 billion, an 8% increase over 2024, and a pro forma EPS of approximately $7.80. The company also announced plans to increase its annual cash dividend by 20%, subject to shareholder approval.

Garmin's strong operational performance was reflected in its improved gross and operating margins, which stood at 59.3% and 28.3%, respectively, in the fourth quarter.

The market reacted positively to Garmin's ability to drive growth through innovation and product diversification across its segments. The bullish 2025 guidance and proposed dividend increase further bolstered investor confidence in the company's prospects.