Q3 2024 Garmin Ltd Earnings Call Transcript
Key Points
- Garmin Ltd (GRMN) reported a 24% increase in consolidated revenue, reaching a new third-quarter record of $1.59 billion.
- The company achieved record revenue in all five business segments, with notable growth in the fitness segment, which saw a 31% increase.
- Gross margin expanded by 300 basis points to 60%, driven by lower product costs and favorable product mix.
- Operating income increased by 62% year over year, with an operating margin expansion of 640 basis points to 27.6%.
- Garmin Ltd (GRMN) updated its full-year 2024 guidance, anticipating revenue of approximately $6.12 billion and pro forma EPS of $6.85, reflecting strong performance across segments.
- The aviation segment experienced a 10% decrease in operating income year over year, attributed to increased R&D spending.
- Despite strong performance, the auto OEM segment's revenue growth estimate for the full year was lowered to 40% due to a softening outlook from major automakers.
- Free cash flow for the third quarter decreased by $90 million compared to the prior-year quarter.
- The core effective tax rate increased to 17.9%, up from 7.2% in the prior-year quarter, primarily due to changes in Switzerland's tax rate.
- Inventory levels increased to approximately $1.5 billion, which could indicate potential challenges in managing supply chain and demand forecasting.
Thank you for standing by, and welcome to the Garmin Limited third-quarter 2024 conference call. (Operator Instructions)
I'd now like to turn the call over to Teri Seck, Director of Investor Relations. You may begin.
Good morning. We would like to welcome you to Garmin Limited's third-quarter 2024 earnings call. Please note that the earnings press release and related slides are available at Garmin's Investor Relations site on the Internet at www.garmin.com/stock. An archive of the webcast and related transcript will also be available on our website. This earnings call includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding our future financial position, revenue segment growth rates, earnings, gross margins, operating margins, future dividends or share repurchases, market shares, product introductions, future demand for our products and plans and objectives are
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
