By Sabela Ojea

Shares of Garmin on Wednesday climbed to a new all-time high after the company delivered an outlook for 2025 that beat Wall Street expectations and raised its annual dividend by 20%.

The stock was up 13% at $242.26 in morning trading. Shares have surged 80% over the past 12 months.

The maker of GPS-enabled devices guided for full-year adjusted earnings--those which strip out one-time items--of $7.80 a share, and sales of about $6.8 billion. Analysts polled by FactSet had forecast adjusted earnings of $7.77 per share and revenue of $6.72 billion for 2025.

Chief Executive Cliff Pemble said the company is entering 2025 with continued strong momentum from its product lineup, with product launches planned during the year.

In addition, Garmin said it will ask shareholders to approve an annual payout of $3.60, or 90 cents on a quarterly basis, up from the current $3.00, or 75 cents a quarter.

The company's outlook and recommended dividend increase come as it logged a drop in profit but higher sales in the fourth quarter.

Garmin posted a net profit of $435.7 million, or $2.25 a share, compared with $542.1 million, or $2.82 a share, for the same period a year earlier. Adjusted earnings came in at $2.41 a share, coming ahead of Wall Street expectations of $2.05 a share.

Quarterly sales jumped 23% to $1.82 billion, after seeing gains across every business category, including fitness and outdoor. Analysts had expected revenue of $1.70 billion.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

February 19, 2025 11:31 ET (16:31 GMT)

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