Jun 26, 2021

Garmin Q2 2021 Earnings Report

Reported record second quarter revenue and operating income.

Key Takeaways

Garmin Ltd. announced record second quarter revenue and operating income, with total revenue of $1.33 billion, a 53% increase over the prior year quarter, and operating income of $371 million, a 97% increase over the prior year quarter. Strong demand for active lifestyle products continued, and the company experienced solid recovery within its aviation and auto segments.

Total revenue of $1.33 billion, a 53% increase over the prior year quarter with double-digit growth in all segments

Gross margin of 58.8% compared to 59.3% in the prior year quarter

Operating margin improved to 28.0% compared to 21.7% in the prior year quarter

GAAP EPS was $1.64 and pro forma EPS was $1.68, representing 85% growth in pro forma EPS over the prior year quarter

Total Revenue
$1.33B
Previous year: $870M
+52.6%
EPS
$1.68
Previous year: $0.91
+84.6%
Gross Margin
58.8%
Previous year: 59.3%
-0.8%
Operating Margin
28%
Previous year: 21.7%
+29.0%
Effective Tax Rate
14.8%
Previous year: 6.8%
+117.6%
Gross Profit
$781M
Previous year: $515M
+51.5%
Cash and Equivalents
$1.64B
Previous year: $1.35B
+21.0%
Free Cash Flow
$120M
Previous year: $142M
-15.7%
Total Assets
$7.4B
Previous year: $6.22B
+19.0%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

Based on the strong performance in the first half of 2021, the company is updating its full year guidance. They now anticipate revenue of approximately $4.9 billion with projected growth in all segments and anticipate full year pro forma EPS will be approximately $5.50.

Positive Outlook

  • Anticipate revenue of approximately $4.9 billion
  • Projected growth in all segments
  • Gross margin of approximately 58.5%
  • Operating margin of approximately 23.8%
  • Full year pro forma effective tax rate of approximately 11.5%

Revenue & Expenses

Visualization of income flow from segment revenue to net income