On February 19, 2025, Garmin Ltd (GRMN, Financial) released its 8-K filing announcing impressive results for the fourth quarter and fiscal year 2024. The company, known for its GPS-enabled hardware and software across fitness, outdoors, auto, aviation, and marine sectors, reported record revenue and profit, alongside a proposed 20% dividend increase.
Garmin Ltd (GRMN, Financial) is a global leader in GPS technology, producing specialized hardware and software for niche activities such as scuba diving and sailing. Operating in 100 countries, Garmin sells its products through distributors and original equipment manufacturers.
Garmin Ltd (GRMN, Financial) reported a consolidated revenue of $1.82 billion for the fourth quarter, marking a 23% increase from the previous year. This performance is significant as it demonstrates the company's ability to grow despite potential market challenges. However, the auto OEM segment faced an operating loss of $9 million, highlighting challenges in maintaining profitability across all segments.
The company achieved a gross margin of 59.3% and an operating margin of 28.3% in the fourth quarter, reflecting operational efficiency. These metrics are crucial for a hardware company like Garmin, as they indicate the ability to manage production costs and maintain profitability.
Garmin Ltd (GRMN, Financial) reported a GAAP EPS of $2.25, which exceeded the analyst estimate of $2.16. The pro forma EPS was $2.41, representing a 40% growth over the prior year quarter. The company's operating income increased by 52% to $516 million, showcasing robust financial health.
| Metric | Q4 2024 | Q4 2023 | YoY Change |
|---|---|---|---|
| Net Sales | $1.82 billion | $1.48 billion | 23% |
| Gross Margin | 59.3% | 58.3% | - |
| Operating Income | $516 million | $340 million | 52% |
| GAAP EPS | $2.25 | $2.82 | (20%) |
| Pro Forma EPS | $2.41 | $1.72 | 40% |
The fitness segment saw a 31% revenue increase, driven by demand for wearables. The outdoor segment grew by 29%, led by adventure watches. Aviation and marine segments also posted growth, while the auto OEM segment faced challenges with a 30% revenue increase but an operating loss.
“2024 was a year of remarkable growth and achievement for Garmin, resulting in record full-year consolidated revenue and record full-year revenue in all five of our segments, as well as record full-year consolidated operating income. We are entering 2025 with continued strong momentum from our robust product lineup and have many product launches planned during the year. I am very proud of what we accomplished in 2024 and look forward to all that 2025 will bring.” - Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.
Garmin Ltd (GRMN, Financial) has demonstrated strong financial performance, surpassing analyst estimates and achieving record revenue and profit. The company's strategic focus on innovation and product diversification has positioned it well for continued growth. However, challenges in the auto OEM segment highlight the need for strategic adjustments to maintain profitability across all areas.
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Explore the complete 8-K earnings release (here) from Garmin Ltd for further details.
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