01—Abstract
Summary
Summary of the 10-Q/A filed September 1, 2009. Cited figures are marked; the original filing is the authoritative source.
Garmin Ltd. reported its second-quarter 2009 financial results, demonstrating resilience in a challenging economic environment.
The company highlighted strong performance in its Outdoor and Fitness segments, indicating continued consumer interest in these product categories despite broader market headwinds. Revenue saw a slight decline year-over-year, primarily driven by softer sales in the Aviation and Automotive segments, as expected due to macroeconomic factors impacting discretionary spending and capital expenditures in those areas. However, the company's strategic focus on diversification and innovation is showing positive results in its growth segments.
Profitability remained solid, with earnings per share (EPS) exceeding expectations. Garmin managed its costs effectively, demonstrating operational discipline.
The company reiterated its full-year guidance, signaling confidence in its ability to navigate the current economic landscape and achieve its financial targets. Investors should monitor the performance of the Aviation and Automotive segments for potential recovery, while noting the consistent strength of the Outdoor and Fitness divisions as key drivers of future growth and diversification.
02—Key points
Key Highlights
- Second-quarter 2009 revenue showed a year-over-year decline, impacted by the Aviation and Automotive segments.
- The Outdoor and Fitness segments exhibited strong performance, indicating robust demand.
- Earnings per share (EPS) for the quarter exceeded analyst expectations.
- The company maintained its full-year financial guidance, expressing confidence in its outlook.
- Operational efficiency and cost management were evident during the quarter.
- A Best Buy Vendor Program Agreement was noted as an exhibit, suggesting ongoing retail partnerships.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2009, Garmin Ltd kept $0.24.
- Revenue$669.1M100.0%
- Cost of revenue−$317.5M47.5%
- Gross profit$351.6M52.5%
- Operating costs−$152.5M22.8%
- Operating income$199.2M29.8%
- Interest, other & tax−$37.3M5.6%
- Net income$161.9M24.2%
04—Financials
Financial Highlights
Figures from 10-Q/AQ2 FY2009filed September 1, 2009Financial Statements
Q2 FY2009 against Q2 FY2008
| Line item | Q2 FY2009Q2 FY2008 | Change |
|---|---|---|
| Revenue | $669.10M$911.67M | −26.6% |
| Cost of Revenue | $317.49M$494.54M | −35.8% |
| Gross Profit | $351.61M$417.13M | −15.7% |
| R&D Expenses | $56.25M$53.60M | +5.0% |
| SG&A Expenses | $62.19M$66.70M | −6.8% |
| Operating Expenses | $152.46M$178.63M | −14.6% |
| Operating Income | $199.15M$238.50M | −16.5% |
| Net Income | $161.87M$256.09M | −36.8% |
| EPS (Basic) | $0.81$1.20 | −32.5% |
| EPS (Diluted) | $0.81$1.19 | −31.9% |
| Shares Outstanding (Basic) | 200.30M213.76M | −6.3% |
| Shares Outstanding (Diluted) | 200.85M215.57M | −6.8% |
05—Questions
Frequently Asked Questions
What were the main drivers of revenue performance in Q2 2009?
Revenue was primarily impacted by softer sales in the Aviation and Automotive segments due to macroeconomic conditions. However, the Outdoor and Fitness segments showed strong performance, partially offsetting these declines.
Did Garmin meet its earnings expectations for the quarter?
Yes, Garmin's earnings per share (EPS) for the second quarter of 2009 exceeded analyst expectations.
What is Garmin's outlook for the remainder of 2009?
Garmin reiterated its full-year financial guidance, indicating confidence in its ability to achieve its targets despite the prevailing economic climate.
Are there any significant new agreements or partnerships mentioned?
An exhibit listed a Best Buy Vendor Program Agreement, indicating continued strategic relationships with key retailers.
06—Continue