On October 30, 2024, Garmin Ltd (GRMN, Financial) released its 8-K filing announcing impressive results for the third quarter ended September 28, 2024. The company, known for its GPS-enabled hardware and software across fitness, outdoors, auto, aviation, and marine sectors, reported record consolidated revenue and operating income, significantly exceeding analyst expectations.
Record Revenue and Earnings
Garmin Ltd (GRMN, Financial) reported a consolidated revenue of $1.59 billion for the third quarter, marking a 24% increase compared to the same period last year. This figure surpasses the analyst estimate of $1.44 billion. The company's gross margin expanded to 60.0%, while the operating margin increased to 27.6%, resulting in an operating income of $437 million, a 62% rise from the previous year. The GAAP earnings per share (EPS) reached $2.07, with a pro forma EPS of $1.99, both significantly above the estimated EPS of $1.46.
Segment Performance and Strategic Initiatives
The fitness segment saw a 31% revenue increase, driven by strong demand for wearables, while the outdoor segment grew by 21%, primarily due to the launch of new adventure watches. The aviation segment experienced a modest 3% growth, whereas the marine segment surged by 22%, bolstered by the acquisition of JL Audio®. The auto OEM segment reported a remarkable 53% increase in revenue, attributed to growth in domain controllers.
Financial Achievements and Industry Recognition
Garmin Ltd (GRMN, Financial) achieved several milestones, including being named the 2024 Manufacturer of the Year by the National Marine Electronics Association for the 10th consecutive year. The company also received six Product of Excellence awards and was recognized as the #1 Most Innovative Marine Company by Soundings Trade Only.
Financial Statements and Key Metrics
Garmin Ltd (GRMN, Financial) reported a net income of $399 million for the quarter, up from $257 million in the prior year. The company generated operating cash flows of $258 million and free cash flow of $219 million. Garmin ended the quarter with cash and marketable securities totaling approximately $3.5 billion.
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Net Sales | $1.59 billion | $1.28 billion | 24% |
| Operating Income | $437 million | $270 million | 62% |
| GAAP EPS | $2.07 | $1.34 | 54% |
Analysis and Outlook
Garmin Ltd (GRMN, Financial)'s strong performance in Q3 2024 underscores its ability to leverage growth opportunities across various market segments and geographies. The company's strategic acquisitions and innovative product launches have positioned it well for continued success. As Garmin raises its full-year guidance, it reflects confidence in sustaining this momentum into the holiday season and beyond.
“We delivered another quarter of impressive financial results as our highly differentiated and innovative products resonate with customers, and we successfully leveraged growth opportunities across market segments and geographies. We are raising our 2024 outlook based on the results we have achieved so far and the momentum we are experiencing as we enter the important holiday selling season.” - Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.
Explore the complete 8-K earnings release (here) from Garmin Ltd for further details.
