Swiss GPS and fitness device manufacturer Garmin (GRMN) topped the S&P 500 Wednesday, after delighting shareholders with better-than-expected earnings.
Adjusted net income of $140 million topped Wall Street estimates by 56%, while sales of $781 million beat forecasts by 3%, based on Bloomberg consensus data.
"Gross margin was 52.9%, ahead of our expectations, but down slightly year-over-year, driven primarily by the competitive dynamics in our business segment," CEO Clifton Pemble said on an earnings call with analysts. "Beginning with the fitness segment, revenue for the year grew 16%, driven by growth in activity trackers."
Garmin also rolled out its Elevate line of heart-rate monitoring devices for its running and activity tracking segment last year, which Pemble views as a pioneer for future growth, as well as a new interface with mobile devices.
Devon Energy (DVN), the Oklahoma City-based oil-and-gas exploration company, was among the S&P's worst performers on the day, following a cut to its shareholder dividend to $0.06, down 75% from the previous payout,
The company also joins the ranks of energy companies slashing their workforces hoping to curb costs amid depressed oil prices. Devon's management said on Wednesday's earnings call it targets to cut
roughly 20% of its positions in the first quarter. Shares fell more than 4% on the day.
"We also have plans in place to preserve more than $1 billion of cash flow on a go-forward basis through a number of initiatives, including incremental field-level cost savings, a reduction of our workforce by about 1,000 people and by adjusting the dividend rate to preserve over $300 million of cash flow," CEO David Hager said on Wednesday's earnings call. "In an effort to further strengthen our balance sheet, we also have non-core divestitures underway, with the intent to monetize $2 billion to $3 billion of assets during 2016."
Devon shares have fallen 36.5% so far this year, largely driven by low energy prices and concerns over a mounting debt load of more than $13 billion.
Meanwhile, the broader index on the day jumped about 2%, while oil surged nearly 8% to $31.34, based on U.S. benchmark West Texas Intermediate.