Summary
Garmin Ltd. reported robust financial performance for the 39-week period ended September 28, 2024, showcasing significant growth in net sales and operating income. Net sales increased by 19% year-over-year, reaching $4.47 billion, driven by strong contributions from the Fitness, Auto OEM, and Marine segments. The company demonstrated improved profitability, with operating income rising 43% to $1.08 billion, reflecting enhanced gross margins and efficient cost management. This period also saw a substantial increase in net income, up 31% to $975.7 million, with diluted earnings per share reaching $5.06. Garmin maintained a healthy balance sheet, with total assets growing to $9.35 billion and stockholders' equity increasing to $7.51 billion. The company generated strong operating cash flow of $948.6 million, underscoring its financial health and ability to fund operations, dividends, and strategic initiatives, including recent share repurchases and a minor acquisition. Investors will note the continued strength across key segments, particularly the impressive growth in Auto OEM and Fitness, alongside solid performance in Outdoor and Marine. While Aviation saw a slight dip in operating income, overall profitability remains strong. The company's proactive share repurchase program and consistent dividend payouts signal confidence in its financial trajectory and commitment to shareholder returns. The effective tax rate saw an increase due to global tax rate adjustments.
Financial Highlights
49 data points| Revenue | $1.59B |
| Cost of Revenue | $634.42M |
| Gross Profit | $951.60M |
| R&D Expenses | $249.16M |
| SG&A Expenses | $264.96M |
| Operating Expenses | $514.12M |
| Operating Income | $437.48M |
| Net Income | $399.11M |
| EPS (Basic) | $2.08 |
| EPS (Diluted) | $2.07 |
| Shares Outstanding (Basic) | 192.20M |
| Shares Outstanding (Diluted) | 193.17M |
Key Highlights
- 1Net sales increased by 19% year-over-year to $4.47 billion for the first 39 weeks of 2024.
- 2Operating income surged by 43% to $1.08 billion for the first 39 weeks of 2024, indicating improved profitability.
- 3Net income grew by 31% to $975.7 million for the first 39 weeks of 2024, with diluted EPS at $5.06.
- 4Fitness and Auto OEM segments showed particularly strong year-over-year net sales growth of 32% and 50% respectively for the first 39 weeks.
- 5The company generated robust operating cash flow of $948.6 million for the first 39 weeks, supporting financial flexibility.
- 6Garmin continues its share repurchase program, with approximately $270.2 million remaining authorization as of September 28, 2024.
- 7The effective tax rate increased to 17.3% for the first 39 weeks of 2024 due to global minimum tax requirements.