What were the main drivers of Garmin's revenue growth in the second quarter of 2014?

Garmin's revenue growth was primarily driven by strong performance in its Fitness segment, which saw a 79% increase due to new product launches like the vívofit. The Aviation segment also contributed with an 11% increase, and the Marine segment grew by 1%. The Automotive/Mobile segment showed modest growth of 2%.

How did Garmin's profitability change compared to the previous year?

Garmin's profitability improved significantly. Operating income increased by 29% to $218.8 million, and the operating margin expanded from 24% to 28%. This was supported by an increase in the gross profit margin to 57% and effective management of operating expenses.

What is the status of Garmin's share repurchase program?

As of June 28, 2014, Garmin had repurchased approximately $220.9 million of its common shares under its $300 million authorization, with approximately $79.1 million remaining available for future repurchases. Share repurchases are part of the company's strategy to return capital to shareholders.

What impact did foreign currency fluctuations have on Garmin's results?

Foreign currency exchange rates had a notable impact, resulting in a foreign currency loss of $20.4 million for the quarter, primarily due to the weakening of the U.S. Dollar against the Taiwan Dollar. This contrasts with a gain of $27.5 million in the same period last year.

GRMN 10-Q Quarterly Report Q2 FY2014 — Revenue, Net Income, EPS

Summary

Garmin Ltd. reported solid financial results for the quarter ended June 28, 2014, with net sales increasing by 12% year-over-year to $777.8 million. This growth was driven by strong performance in the Fitness, Aviation, and Marine segments, with the Fitness segment experiencing a remarkable 79% surge in sales, largely attributed to new product introductions like the vívofit. The company demonstrated improved profitability, with operating income rising by 29% to $218.8 million. This was supported by an increase in gross profit margin to 57% and a reduction in operating expenses as a percentage of revenue. Diluted earnings per share also saw a healthy increase to $0.93. Garmin continues to manage its cash effectively, showing a significant increase in net cash provided by investing activities due to the collection of a loan receivable, alongside substantial cash used in financing activities for share repurchases and dividends.

Financial Highlights

50 data points

Beta

Revenue

$777.85M

0.6% Gross Margin

Net Income

$181.98M

0.2% Net Margin

EPS (Diluted)

$0.93

Total Assets

$4.74B

Cash & Equivalents

$1.23B

Free Cash Flow

$142.96M

Financial Statements

Beta

Revenue	$777.85M
Cost of Revenue	$333.36M
Gross Profit	$444.49M
R&D Expenses	$98.40M
SG&A Expenses	$92.41M
Operating Expenses	$225.73M
Operating Income	$218.75M
Net Income	$181.98M
EPS (Basic)	$0.94
EPS (Diluted)	$0.93
Shares Outstanding (Basic)	194K
Shares Outstanding (Diluted)	195K

Key Highlights

1Net sales grew 12% year-over-year to $777.8 million for the quarter.
2Fitness segment sales surged by 79% to $150.7 million, indicating strong market reception of new products.
3Operating income increased by 29% to $218.8 million, reflecting improved operational efficiency and gross margins.
4Gross profit margin improved to 57% from 55% in the prior year's quarter.
5Diluted earnings per share rose to $0.93 from $0.88 year-over-year.
6The company reported strong cash flow from investing activities, largely due to the repayment of a loan receivable.
7Garmin returned capital to shareholders through dividends and significant share repurchases.

GARMIN LTD Quarterly Report for Q2 Ended Jun 28, 2014

Summary

Financial Highlights

Key Highlights

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