Garmin Ltd GRMN reported fiscal second-quarter 2024 revenue growth of 14% year-on-year to $1.51 billion, beating the analyst consensus estimate of $1.41 billion.
The GPS navigation and wearable technology company’s proforma EPS of $1.58 beat the analyst consensus estimate of $1.40.
Segments: Revenue from Fitness grew by 28% year over year to $428.40 million, led by growth in wearables.
Outdoor revenue declined by 2% year over year to $439.87 million, primarily due to declines in adventure watches.
Aviation revenue remained flat year over year at $218.25 million, driven by growth in OEM product categories.
Marine revenue increased by 26% year over year to $272.95 million due to contributions from the acquisition of JL Audio.
Auto OEM grew 41% Y/Y to $147.19 million, primarily driven by growth in domain controllers.
The gross margin declined 20 bps to 57.3%. The operating margin climbed to 22.7% from 21.5% a year ago.
Garmin generated $218.16 million in free cash flow for the quarter versus $221.17 million a year ago. It held $3.4 billion in cash and equivalents as of June 29, 2024.
Dividend: At the 2024 annual shareholders’ meeting, the Board approved a cash dividend of $3.00 per share, payable in four equal installments.
FY24 Outlook: Garmin expects a revenue of $5.95 billion (up from prior $5.75 billion) versus the consensus of $5.87 billion.
Garmin maintained a proforma EPS of $6.00 (up from prior $5.40) against the consensus of $5.72.
Garmin stock gained over 69% in the last 12 months.
Price Action: GRMN shares traded lower by 2.70% at $174.51 at the last check on Wednesday.
Photo via Wikimedia Commons
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