Garmin Earnings: Firm Blows It Out of the Water, Increasing Marine Market Share; FVE Raised to $179

We are raising our fair value estimate for narrow-moat Garmin to $179 from $148 per share after the company posted outstanding third-quarter results, nicely beating our top- and bottom-line projections. All of the firm's five segments except aviation grew by 20% plus year over year. Even in aviation, the firm is rolling out promising new offerings—like a runway occupancy awareness system, the only such product on the market—in an otherwise more mature market. On profitability, as scale grows, pure material costs leverage is well underway, and the firm is experiencing benefits from the Taiwan dollar. Shares are up around 23% upon results, near $204 per share—leaving the stock moderately overvalued in our view.