Summary
Garmin Ltd. reported a strong second quarter for 2024, with net sales increasing by 14% to $1.51 billion and net income rising by 4.4% to $300.6 million year-over-year. For the first half of the year, net sales grew 17% to $2.89 billion and net income increased by 17.6% to $576.6 million. This performance was driven by robust growth across multiple segments, particularly Fitness and Auto OEM, with notable contributions from the JL Audio acquisition bolstering the Marine segment. The company's operating income saw a significant increase of 20% for the quarter and 33% for the half-year, demonstrating effective cost management and operational leverage. The company's balance sheet remains solid, with $1.94 billion in cash and cash equivalents and an additional $288.7 million in short-term marketable securities as of June 29, 2024. Operating cash flow was strong, generating $690.6 million in the first half of 2024. Garmin also continues to return value to shareholders through dividends and a newly initiated share repurchase program, with $290.3 million available for future repurchases under the 2024 Program.
Financial Highlights
50 data points| Revenue | $1.51B |
| Cost of Revenue | $643.78M |
| Gross Profit | $862.89M |
| R&D Expenses | $243.15M |
| SG&A Expenses | $277.71M |
| Operating Expenses | $520.86M |
| Operating Income | $342.03M |
| Net Income | $300.63M |
| EPS (Basic) | $1.57 |
| EPS (Diluted) | $1.56 |
| Shares Outstanding (Basic) | 192.07M |
| Shares Outstanding (Diluted) | 192.90M |
Key Highlights
- 1Total net sales increased 14% to $1.51 billion for the 13-week period ended June 29, 2024, and 17% to $2.89 billion for the 26-week period ended June 29, 2024.
- 2Net income grew to $300.6 million for the 13-week period (a 4.4% increase) and $576.6 million for the 26-week period (a 17.6% increase) compared to the prior year.
- 3Operating income showed strong growth, up 20% to $342.0 million for the quarter and up 33% to $640.4 million for the first half of the year.
- 4The Fitness segment saw substantial revenue growth of 28% for the quarter and 33% for the half-year, driven by wearables.
- 5The Auto OEM segment experienced significant revenue increases of 41% for the quarter and 48% for the half-year, attributed to growth in domain controllers.
- 6The company maintained a strong liquidity position with $1.94 billion in cash and cash equivalents as of June 29, 2024.
- 7Garmin initiated a new share repurchase program in February 2024, with $290.3 million remaining capacity as of June 29, 2024.