Garmin reports Q1 revenue of $1.17 billion

Garmin has reported its first quarter 2022 earnings with a record consolidated revenue of $1.17 billion, a 9 per cent increase over the prior year quarter, with three segments – including marine – posting double-digit growth.

Revenue from the marine segment grew 21 per cent in the first quarter with growth across multiple categories led by strong demand for Garmin chartplotters. Gross and operating margins were 51 per cent and 23 per cent, respectively, resulting in $59 million of operating income. During the quarter, Garmin launched the new LiveScope Plus, a high-resolution live sonar for the recreational fishing market.

Gross and operating margins were 56.5 per cent and 19.5 per cent, respectively. Operating income stood at $229 million, an 8 per cent decrease compared to the prior year quarter.

High freight costs and currency shifts have impacted the margin across the business, but Garmin says demand remains strong.

In his executive overview, Cliff Pemble, president and chief executive officer, said: “We delivered another quarter of growth and record revenue in an increasingly complex and challenging business environment. High freight cost and component supply challenges persist while new headwinds emerge such as the strengthening of the U.S. dollar and the uncertainty created by Russia’s invasion of Ukraine. In this dynamic environment, we remain focused on creating highly differentiated products that excite our customers and lead to success.”

Garmin states it is maintaining its 2022 guidance for revenue of approximately $5.5 billion.