Summary
Garmin Ltd.'s 2017 Form 10-K filing shows a year of robust growth, with total net sales increasing by 2% to $3.09 billion. This growth was driven by strong performance in the Outdoor, Marine, and Aviation segments, which saw significant revenue increases. Conversely, the Fitness and Auto segments experienced declines, with Fitness revenue impacted by the contracting basic activity tracker market and Auto revenue continuing its downward trend due to the shift towards mobile navigation and integrated in-car systems. The company maintained a strong gross profit margin of 58%, reflecting a favorable shift in product mix towards higher-margin offerings. Research and Development (R&D) investment increased by 9% to $511.6 million, underscoring Garmin's commitment to innovation. The company's strong operational execution resulted in a 7% increase in operating income to $668.9 million. Garmin ended the year with a healthy balance sheet, featuring $891.5 million in cash and cash equivalents and $1.4 billion in marketable securities, providing ample liquidity. The company also continued to return capital to shareholders through dividends, demonstrating financial discipline and a focus on shareholder value.
Financial Highlights
53 data points| Revenue | $3.09B |
| Cost of Revenue | $1.32B |
| Gross Profit | $1.80B |
| R&D Expenses | $511.63M |
| SG&A Expenses | $437.98M |
| Operating Expenses | $1.11B |
| Operating Income | $683.64M |
| Net Income | $709.01M |
| EPS (Basic) | $3.77 |
| EPS (Diluted) | $3.76 |
| Shares Outstanding (Basic) | 187.83M |
| Shares Outstanding (Diluted) | 188.73M |
Key Highlights
- 1Total net sales grew 2% year-over-year to $3.09 billion, driven by strong performance in Outdoor, Marine, and Aviation segments.
- 2Fitness and Auto segments saw revenue declines, attributed to market shifts (activity trackers) and technological replacements (mobile/in-car navigation), respectively.
- 3Gross profit margin improved to 58%, indicating a positive shift in product mix towards higher-margin products.
- 4Research and Development (R&D) spending increased by 9% to $511.6 million, highlighting continued investment in innovation.
- 5Operating income increased by 7% to $668.9 million, demonstrating effective operational execution.
- 6The company maintained a strong liquidity position with $891.5 million in cash and $1.4 billion in marketable securities.
- 7Garmin continued to return capital to shareholders through dividends, with a total of $2.04 per share declared for the year.