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Jun 27, 2020

Garmin Q2 2020 Earnings Report

Garmin reported strong revenue and income, with fitness and marine segments offsetting declines in other areas.

Key Takeaways

Garmin's Q2 2020 revenue reached $870 million, a 9% decrease year-over-year, with growth in the fitness and marine segments partially offsetting declines in outdoor, aviation, and automotive. The company reported a GAAP EPS of $0.96 and a pro forma EPS of $0.91. They also acquired Firstbeat Analytics.

Total revenue was $870 million, a 9% year-over-year decrease.

Gross margin was 59.3% and operating margin was 21.7%.

GAAP EPS was $0.96 and pro forma EPS was $0.91.

Acquired Firstbeat Analytics, a leading provider of physiological analytics technology.

Total Revenue
$870M
Previous year: $955M
-8.9%
EPS
$0.91
Previous year: $1.16
-21.6%
Gross Margin
59.3%
Previous year: 60.3%
-1.7%
Operating Margin
21.7%
Previous year: 26.8%
-19.0%
Effective Tax Rate
6.8%
Gross Profit
$515M
Previous year: $575M
-10.4%
Cash and Equivalents
$1.35B
Previous year: $820M
+65.2%
Free Cash Flow
$142M
Previous year: $80.2M
+77.4%
Total Assets
$6.22B
Previous year: $5.52B
+12.6%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “anticipates”, “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income