Summary
Garmin Ltd.'s second-quarter 2016 report shows robust top-line growth and improved profitability, driven by strong performance in its Fitness and Outdoor segments. Total net sales increased by 5% year-over-year to $811.6 million, with a notable 34% surge in the Fitness segment and a 23% rise in the Outdoor segment. This growth, coupled with a 300-basis point improvement in gross margin to 57%, led to a significant 20% increase in operating income to $200.7 million. The company also demonstrated solid operational cash flow generation, highlighting its financial health and ability to reinvest in growth initiatives and return capital to shareholders.
Financial Highlights
52 data pointsBeta
Financial Statements
Beta
| Revenue | $811.61M |
| Cost of Revenue | $348.65M |
| Gross Profit | $462.96M |
| R&D Expenses | $114.36M |
| SG&A Expenses | $103.68M |
| Operating Expenses | $262.28M |
| Operating Income | $200.67M |
| Net Income | $161.06M |
| EPS (Basic) | $0.85 |
| EPS (Diluted) | $0.85 |
| Shares Outstanding (Basic) | 189K |
| Shares Outstanding (Diluted) | 189K |
Key Highlights
- 1Net sales grew 5% to $811.6 million, driven by strong performance in Fitness and Outdoor segments.
- 2Fitness segment sales increased by 34%, and Outdoor segment sales rose by 23%.
- 3The Auto segment experienced a 18% decline in net sales, impacting overall growth.
- 4Gross profit increased by 10% to $463.0 million, with gross margin improving by 300 basis points to 57%.
- 5Operating income surged 20% to $200.7 million, reflecting improved sales and margins.
- 6Cash provided by operating activities was $279.4 million for the first half of 2016, a significant increase from the prior year.
- 7The company repurchased approximately $123.5 million worth of shares under its buyback program as of June 25, 2016.