Summary
Garmin Ltd. reported solid revenue growth for the first three quarters of 2021, up 27% year-over-year to $3.59 billion, driven by strong performance across most of its segments, particularly Fitness, Marine, and Auto. While total net sales increased, the company noted a slight decrease in total unit sales, attributing it to shifts in segment and product mix. Gross profit also saw a significant increase of 25%, though the consolidated gross margin experienced a slight decrease due to higher freight costs. Research and development expenses saw a notable increase of 22%, reflecting continued investment in innovation. Despite challenges like supply chain disruptions and increased freight costs, Garmin demonstrated resilience, with operating income up 32% to $903.5 million for the first nine months of the year. The company maintains a strong liquidity position with approximately $3.2 billion in cash, cash equivalents, and marketable securities as of September 25, 2021, supporting its operational needs, capital expenditures, and dividend payments. The company anticipates continued supply chain challenges through the end of 2021 but remains confident in its ability to meet working capital and other financial requirements.
Financial Highlights
50 data points| Revenue | $1.19B |
| Cost of Revenue | $496.03M |
| Gross Profit | $695.95M |
| R&D Expenses | $198.93M |
| SG&A Expenses | $177.65M |
| Operating Expenses | $413.28M |
| Operating Income | $282.67M |
| Net Income | $259.04M |
| EPS (Basic) | $1.35 |
| EPS (Diluted) | $1.34 |
| Shares Outstanding (Basic) | 192.32M |
| Shares Outstanding (Diluted) | 193.19M |
Key Highlights
- 1Total net sales increased by 27% to $3.59 billion for the first nine months of 2021, compared to the same period in 2020.
- 2Gross profit grew by 25% to $2.12 billion, though the consolidated gross margin slightly decreased due to higher freight costs.
- 3Operating income saw a substantial increase of 32% to $903.5 million for the first nine months of 2021.
- 4Research and development expenses increased by 22% to $618.3 million, indicating ongoing investment in product innovation.
- 5The company ended the period with strong liquidity, holding $3.2 billion in cash, cash equivalents, and marketable securities.
- 6Supply chain challenges and increased freight costs are noted as ongoing concerns, expected to persist through at least the end of 2021.
- 7The Auto OEM segment reported an operating loss, a trend management expects to continue through 2021 due to lower gross margins and increased program expenses.