Garmin Ltd. GRMN reported fourth-quarter 2019 pro-forma earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.00. Moreover, the figure improved 26% on a year-over-year basis and 1.6% sequentially.Net sales came in at $1.102 billion, up 18% from the year-ago quarter and 18% sequentially. The top-line also outpaced the Zacks Consensus Estimate of $998.6 million.Strong performance of its fitness, outdoor, marine and aviation segments drove the year-over-year top-line growth.Management is focused on continued innovation, diversification and market expansion to explore growth opportunities in all business segments.Segmental RevenuesOutdoor (27% of net sales): The segment generated fourth-quarter sales of $294.8 million, improving 16% year over year. The year-over-year increase was primarily driven by robust demand for Garmin’s adventure watches.Fitness (34%): This segment generated sales of $372.5 million, which increased 34% from the year-ago quarter. This can be primarily attributed to its well-performing advanced wearables. Further, positive contributions from the Tacx buyout aided top-line growth.Aviation (18%): The segment generated sales of $193.1 million, improving 22% on a year-over-year basis. This can be primarily attributed to the well-performing OEM and aftermarket systems.Marine (11%): Garmin generated sales of $115.8 million from this segment, increasing 22% on a year-over-year basis. The company witnessed growing demand for chartplotters, advanced sonars and the revolutionary new Force trolling motor during the reported quarter, which in turn drove the segment’s topline.Auto (10%): This segment generated sales of $126 million, down 15% from the prior-year quarter. The decline was mainly due to shrinking of the personal navigation device market and lower year-over-year OEM sales.Garmin Ltd. Price, Consensus and EPS Surprise Garmin Ltd. price-consensus-eps-surprise-chart | Garmin Ltd. QuoteOperating ResultsIn the fourth quarter, gross margin was 58%, which contracted 90 basis points (bps) from the year-ago period.The company’s operating expenses of $363 million were up 11% from the prior-year quarter. However, as a percentage of revenues, the figure contracted 210 bps year over year to 32.9%Operating margin of 25.1% in the reported quarter expanded 120 bps year over year.Balance Sheet & Cash FlowAt the end of the fourth quarter, cash, cash equivalents and marketable securities came in $1.40 billion, higher than $1.28 billion in the third quarter.Inventories were $752.9 million compared with $749.8 million in the third quarter. We note that the company had no long-term debt in the reported quarter.At the end of the fourth quarter, it generated free cash flow of $208 million.2020 GuidanceFor 2020, Garmin issued its guidance for pro-forma earnings of $4.60 per share. The Zacks Consensus Estimate for earnings is pegged at $4.27 per share.The company expects revenues to be $4 billion. The Zacks Consensus Estimate for revenues is pegged at $3.81 billion.It expects gross and operating margins to be 59.2% and 23.5%, respectively, for 2020.Zacks Rank & Key PicksGarmin currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Itron, Inc. ITRI, Teradyne, Inc. TER and Agilent Technologies A, each carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Long-term earnings growth for Itron, Teradyne, and Agilent is currently projected at 25%, 13.21% and 12.5%, respectively.Free: Zacks’ Single Best Stock Set to DoubleToday you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.See 5 Stocks Set to Double>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Itron, Inc. (ITRI): Free Stock Analysis Report Garmin Ltd. (GRMN): Free Stock Analysis Report Agilent Technologies, Inc. (A): Free Stock Analysis Report Teradyne, Inc. (TER): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research