Garmin Ltd (GRMN, Financial) released its earnings report for the third quarter ended September 30, 2023, on November 1, 2023. The company reported a 12% increase in consolidated revenue, reaching $1.28 billion. Operating income also saw a 13% increase compared to the prior year quarter, amounting to $270 million. Garmin Ltd (GRMN) reported a GAAP EPS of $1.34 and pro forma EPS of $1.41, representing a 14% growth in pro forma EPS over the prior year quarter.
Financial Performance Highlights
Garmin Ltd (GRMN, Financial) reported record third quarter revenue in four of its five segments. The company's gross margin and operating margin were 57.0%, and 21.2% respectively. The company generated strong operating cash flows of $357 million and free cash flow of $312 million. Garmin Ltd (GRMN) also launched new fitness wearables with robust health and wellness features and completed the strategic acquisition of JL Audio, strengthening its marine entertainment product portfolio.
Segment Performance
The fitness segment saw a 26% growth in revenue, driven by strong demand for wearables. The outdoor segment grew by 7%, led by adventure watches. The aviation segment grew by 5%, driven by growth in OEM product categories. However, the marine segment saw a 7% decrease in revenue. The auto OEM segment grew by 59%, primarily due to increased shipments of domain controllers.
Outlook for 2023
Based on the performance in the first three quarters of 2023 and the closing of the acquisition of JL Audio, Garmin Ltd (GRMN, Financial) is adjusting its full year guidance. The company now anticipates revenue of approximately $5.150 billion and pro forma EPS of $5.25 based on a gross margin of 56.7%, an operating margin of 19.8%, and a full year pro forma effective tax rate of 8.5%.
Dividend Announcement
The board of directors has established December 29, 2023, as the payment date for the third dividend installment of $0.73 per share with a record date of December 15, 2023.
Explore the complete 8-K earnings release (here) from Garmin Ltd for further details.
