On July 31, 2024, Garmin Ltd (GRMN, Financial) released its 8-K filing for the second quarter of 2024, showcasing impressive financial performance and surpassing analyst expectations.
Garmin Ltd (GRMN, Financial), a global leader in GPS-enabled hardware and software across fitness, outdoors, auto, aviation, and marine verticals, reported record revenue and raised its full-year guidance. The company operates in 100 countries, selling products through distributors and original equipment manufacturers.
Q2 2024 Financial Highlights
Garmin Ltd (GRMN, Financial) reported consolidated revenue of $1.51 billion, a 14% increase compared to the prior year quarter, surpassing the analyst estimate of $1.414 billion. The company achieved a GAAP EPS of $1.56 and a pro forma EPS of $1.58, exceeding the estimated EPS of $1.38.
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Net Sales | $1,506,671 | $1,320,795 | 14% |
| Operating Income | $342,027 | $284,355 | 20% |
| GAAP EPS | $1.56 | $1.50 | 4% |
| Pro Forma EPS | $1.58 | $1.45 | 9% |
Segment Performance
Garmin Ltd (GRMN, Financial) saw varied performance across its segments:
- Fitness: Revenue increased by 28%, driven by growth in wearables.
- Outdoor: Revenue decreased by 2%, primarily due to declines in adventure watches.
- Aviation: Revenue remained flat, with growth in OEM products offset by declines in aftermarket products.
- Marine: Revenue increased by 26%, driven by the acquisition of JL Audio®.
- Auto OEM: Revenue increased by 41%, driven by growth in domain controllers.
Financial Achievements and Metrics
Garmin Ltd (GRMN, Financial) reported a gross margin of 57.3% and an operating margin of 22.7%. The company generated operating cash flows of $255 million and free cash flow of $218 million. Garmin ended the quarter with cash and marketable securities of approximately $3.4 billion.
“Garmin delivered another impressive quarter of growth in both revenue and operating profit, made possible by an innovative product lineup and the strength of our diversified business model. We are pleased with our results so far in 2024, which have exceeded our expectations and give us confidence to raise our full year revenue and EPS guidance.” - Cliff Pemble, President and Chief Executive Officer of Garmin Ltd.
Income Statement Summary
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $1,506,671 | $1,320,795 |
| Gross Profit | $862,891 | $759,442 |
| Operating Income | $342,027 | $284,355 |
| Net Income | $300,630 | $287,939 |
Balance Sheet Summary
| Metric | June 29, 2024 | December 30, 2023 |
|---|---|---|
| Total Assets | $8,883,322 | $8,603,569 |
| Total Liabilities | $1,878,770 | $1,591,509 |
| Total Stockholders Equity | $7,004,982 | $7,012,060 |
Analysis and Future Outlook
Garmin Ltd (GRMN, Financial) has demonstrated robust growth and resilience across its diversified business model. The company's ability to innovate and expand its product lineup has been a key driver of its financial success. The raised full-year guidance reflects confidence in continued growth and market leadership.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Garmin Ltd for further details.
