Jul 01, 2023

Garmin Q2 2023 Earnings Report

Returned to consolidated sales growth.

Key Takeaways

Garmin Ltd. announced a 6% increase in consolidated revenue, reaching $1.32 billion, with growth in three of five segments. The company's gross margin was 57.5% and operating margin was 21.5%. GAAP EPS was $1.50 and pro forma EPS was $1.45, representing 1% growth in pro forma EPS over the prior year quarter.

Consolidated revenue of $1.32 billion, a 6% increase compared to the prior year quarter

Gross margin and operating margin were 57.5%, and 21.5%

Operating income was $284 million, a 3% decrease compared to the prior year quarter

GAAP EPS was $1.50 and pro forma EPS(1) was $1.45, representing 1% growth in pro forma EPS over the prior year quarter

Total Revenue
$1.32B
Previous year: $1.24B
+6.4%
EPS
$1.45
Previous year: $1.44
+0.7%
Gross Margin
57.5%
Previous year: 58.7%
-2.0%
Operating Margin
21.5%
Previous year: 23.6%
-8.9%
Effective Tax Rate
8.9%
Previous year: 7.6%
+17.1%
Gross Profit
$759M
Previous year: $729M
+4.2%
Cash and Equivalents
$1.43B
Previous year: $1.09B
+31.1%
Free Cash Flow
$221M
Previous year: $4.76M
+4548.4%
Total Assets
$7.87B
Previous year: $7.81B
+0.7%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

Based on our performance in the first half of 2023, we are adjusting our full year guidance. We now anticipate revenue of approximately $5.05 billion and pro forma EPS of $5.15 based on gross margin of 57.2%, 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