Mar 27, 2021

Garmin Q1 2021 Earnings Report

Reported strong double-digit revenue and operating income growth.

Key Takeaways

Garmin reported a strong first quarter with a 25% increase in total revenue, driven by double-digit growth in the fitness, outdoor, marine, and auto segments. Gross margin and operating margin improved, leading to a 41% increase in operating income and a 30% growth in pro forma EPS.

Total revenue increased by 25% year-over-year to $1.07 billion, driven by growth in fitness, outdoor, marine, and auto segments.

Gross margin improved to 59.8% compared to 59.2% in the prior year quarter.

Operating margin improved to 23.3% compared to 20.7% in the prior year quarter.

GAAP EPS was $1.14 and pro forma EPS was $1.18, representing 30% growth in pro forma EPS over the prior year quarter.

Total Revenue
$1.07B
Previous year: $856M
+25.2%
EPS
$1.18
Previous year: $0.91
+29.7%
Gross Margin
59.8%
Previous year: 59.2%
+1.0%
Operating Margin
23.3%
Previous year: 20.7%
+12.6%
Effective Tax Rate
12.2%
Previous year: 9.3%
+31.2%
Gross Profit
$642M
Previous year: $507M
+26.6%
Cash and Equivalents
$1.6B
Previous year: $1.05B
+52.5%
Free Cash Flow
$331M
Previous year: $185M
+79.6%
Total Assets
$7B
Previous year: $6.05B
+15.6%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

Garmin is maintaining its 2021 guidance for revenue of approximately $4.6 billion and pro forma EPS of $5.15.

Revenue & Expenses

Visualization of income flow from segment revenue to net income