Garmin Ltd.

Latest Results (23.05.2024):

Executive Summary

Garmin Ltd. reported a strong performance for the first quarter of 2024, with a record consolidated revenue of $1.38 billion, marking a 20% increase from the previous year. The company also saw a significant 51% increase in operating income, reaching $298 million. This growth was supported by expanded gross and operating margins, which were 58.1% and 21.6%, respectively.

Fitness Segment Growth

In the first quarter of 2024, Garmin Ltd.'s fitness segment experienced a robust 40% increase in revenue, driven by high demand for advanced wearables. The segment achieved an operating income of $68 million, with gross and operating margins at 57% and 20%, respectively. This success was bolstered by the launch of the Forerunner® 165 Series and ongoing health research initiatives.

Advancements in Outdoor Products

Garmin Ltd.'s outdoor segment reported an 11% revenue increase in the first quarter of 2024, primarily due to growth in wearable technologies. The segment's operating income stood at $107 million, supported by high gross and operating margins of 66% and 29%, respectively. Key highlights include the annual inReach SOS Year in Review and the launch of the docuseries "7 Days Out."

Marine and Aviation Segments

The marine segment of Garmin Ltd. saw a 17% increase in revenue during the first quarter of 2024, largely due to the acquisition of JL Audio®. The aviation segment modestly grew by 2%, with significant contributions from OEM product categories. Both segments demonstrated strong profitability and operational efficiency, contributing positively to Garmin's overall financial health.

Financial Outlook and Dividends

Looking ahead, Garmin Ltd. maintains its 2024 revenue guidance at approximately $5.75 billion and a pro forma EPS of $5.40. The company announced a quarterly dividend payment of approximately $140 million, with a total annual dividend recommendation of $3.00 per share. Garmin ended the quarter with strong cash flows and a solid balance sheet, positioning it well for future investments and shareholder returns.