Jun 29, 2024

Garmin Q2 2024 Earnings Report

Garmin reported record revenue and raised full year guidance.

Key Takeaways

Garmin announced strong Q2 2024 results with a 14% increase in consolidated revenue to $1.51 billion and a 20% increase in operating income to $342 million. The company's performance exceeded expectations, leading to an upward revision of the full-year revenue and EPS guidance.

Consolidated revenue increased by 14% year-over-year, reaching $1.51 billion.

Gross margin was 57.3% and operating margin was 22.7%.

Operating income grew by 20% compared to the prior year quarter, totaling $342 million.

GAAP EPS was $1.56, and pro forma EPS was $1.58, a 9% increase in pro forma EPS over the prior year quarter.

Total Revenue
$1.51B
Previous year: $1.32B
+14.1%
EPS
$1.58
Previous year: $1.45
+9.0%
Gross Margin
57.3%
Previous year: 57.5%
-0.3%
Operating Margin
22.7%
Previous year: 21.5%
+5.6%
Effective Tax Rate
17.9%
Previous year: 8.9%
+101.1%
Gross Profit
$863M
Previous year: $759M
+13.6%
Cash and Equivalents
$1.94B
Previous year: $1.43B
+35.9%
Free Cash Flow
$218M
Previous year: $221M
-1.4%
Total Assets
$8.88B
Previous year: $7.87B
+12.8%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

Based on the performance in the first half of 2024, the company is adjusting full year guidance and now anticipates revenue of approximately $5.95 billion and pro forma EPS of $6.00.

Positive Outlook

  • Revenue of approximately $5.95 billion
  • Pro forma EPS of $6.00
  • Gross margin of 57.0%
  • Operating margin of 21.3%
  • Full year effective tax rate of 16.0%

Revenue & Expenses

Visualization of income flow from segment revenue to net income