Garmin Q2 2022 Earnings Report
Key Takeaways
Garmin reported a decrease in revenue driven primarily by underperformance in the fitness segment. The company faces headwinds including the strengthening U.S. Dollar, high inflation, and rising interest rates. However, they believe their innovative products and diversification strategy will help them remain strong.
Consolidated revenue of $1.24 billion, a 6% decrease compared to the prior year quarter.
Gross and operating margins were 58.7% and 23.6%, respectively.
Operating income of $293 million, a 21% decrease compared to the prior year quarter.
GAAP EPS was $1.33 and pro forma EPS was $1.44.
Garmin
Garmin
Garmin Revenue by Segment
Garmin Revenue by Geographic Location
Forward Guidance
Based on our performance in the first half of 2022, we are adjusting our full year guidance. We now anticipate revenue of approximately $5.0 billion and pro forma EPS of $4.90 based on gross margin of 56.7%, operating margin of 20.0% and a full year effective tax rate of 8.5%
Revenue & Expenses
Visualization of income flow from segment revenue to net income