Garmin reports record results for Q3 2024
Garmin has announced its financial results for the third quarter ending 28 September 2024, reporting record consolidated revenue and operating income for the period. The company, which specialises in GPS navigation and wearable technology for the marine, automotive and fitness markets, has revised its full-year guidance upward based on these results.
It’s the fifth consecutive quarter of double-digit growth for the Kansas, US-based firm, which also reported a record first-quarter revenue and operating income in May 2024.
In the third quarter this year, Garmin achieved consolidated revenue of $1.59bn, representing a 24 per cent increase compared to the same period last year. The company’s gross margin increased to 60 per cent, while the operating margin reached 27.6 per cent, leading to a 62 per cent rise in operating income to $437m. Garmin earned $2.07 per share this quarter, with adjusted earnings at $1.99 per share. This marks a 41 per cent increase from the same time last year.
Q3 revenue in the marine segment grew by 22 per cent, largely due to the acquisition of JL Audio. Gross margin and operating margin were recorded at 55 per cent and 17 per cent, respectively, generating $38m in operating income.
New product announcements this quarter included the Fusion Apollo series of marine speakers and subwoofers, GC 245/55 marine cameras, and the GPSMAP 9500 black box system. Garmin also completed the acquisition of Lumishore, a company specialising in marine LED lighting, this quarter. For the tenth consecutive year, Garmin received the Manufacturer of the Year title from the National Marine Electronics Association.
“We delivered another quarter of impressive financial results as our highly differentiated and innovative products resonate with customers, and we successfully leveraged growth opportunities across market segments and geographies,” says Cliff Pemble, president and chief executive. “We are raising our 2024 outlook based on the results we have achieved so far and the momentum we are experiencing as we enter the important holiday selling season.”
In the fitness segment, revenue increased by 31 per cent, primarily due to high demand for wearables, with operating income for the segment reaching $148m. In the aviation segment, revenue rose by 3 per cent, driven mainly by aftermarket products, with operating income reaching $44m.
Additional financial information shows that operating expenses for the quarter increased by 12 per cent, primarily due to higher personnel-related costs. The effective tax rate for the quarter was 17.9 per cent, a rise from last year’s 8 per cent, largely due to changes in Switzerland’s statutory tax rate. Garmin generated $258m in operating cash flow, paid $144m in dividends, and repurchased $20m in shares. Approximately $270m remains authorised for share repurchases through December 2026.
Based on its performance to date, Garmin now anticipates full-year revenue of approximately $6.12bn, with a pro forma earnings per share of $6.85. The company projects a gross margin of 58.5 per cent and an operating margin of 24 per cent.
After releasing the Garmin Q3 2024 earnings, the firm’s board has set 27 December 2024 as the next dividend payment date, with a dividend of $0.75 per share and a record date of 13 December 2024.
