Garmin Ltd. (GRMN) is focusing on strengthening its aviation business by enhancing its autonomous flight solutions.
The company’s GFC 500 digital autopilot has received Supplemental Type Certification (STC) from the Federal Aviation Administration (FAA) for use in various aircraft models, including Cessna 177/177A Cardinal, Beechcraft T34A/T34B Series, Piper Seneca PA-34-200T, and PA-34-220T II-V.
The GFC 500 offers reliable autopilot performance and advanced safety features with minimal maintenance requirements. It includes altitude pre-select, VNAV2 and altitude hold, vertical speed, and heading modes.
This certification further reinforces the reliability of Garmin’s aviation technology.
In addition to the GFC 500 certification, Garmin has also received STCs for other aviation products. The GFC 600 digital autopilot is approved for use in Beechcraft King Air F90 aircraft models and Piper PA-31-350 Navajo Chieftain aircraft models. The GI 275 electronic flight instrument has received STC for use in Bell 407 and Robinson R66 helicopters.
Aviation in Focus
Garmin’s aviation segment is expected to benefit from these certifications. The company’s autonomous safety solutions and flight display portfolio have been driving growth in its aviation business. In the second quarter of 2023, the aviation segment generated sales of $217.4 million, accounting for 16.4% of total sales. Garmin’s efforts to strengthen the aviation segment are expected to continue driving its top line.
However, economic uncertainties and foreign exchange headwinds remain concerns for the company.
Zacks Rank & Stocks to Consider
Garmin currently holds a Zacks Rank #4 (Sell). Some better-ranked stocks in the technology sector are Asure Software (ASUR), Arista Networks (ANET), and Adobe (ADBE). Asure Software is ranked #1 (Strong Buy), while Arista Networks and Adobe are ranked #2 (Buy).
Asure Software has shown a long-term earnings growth rate of 27%. Arista Networks has gained 53.3% year-to-date, with a long-term earnings growth rate of 18.75%. Adobe has gained 58.1% year-to-date, with a long-term earnings growth rate of 13.27%.
For the complete list of today’s Zacks #1 Rank stocks, click here.
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This article is written by an analyst at Zacks Investment Research and does not necessarily represent the views of Nasdaq, Inc.