Garmin Q3 2020 Earnings Report
Key Takeaways
Garmin reported a strong third quarter with total revenue of over $1.1 billion, a 19% year-over-year increase, led by robust growth in marine, fitness and outdoor. Gross margin was 60.2% and operating margin was 28.6%. GAAP diluted EPS was $1.63, a 24% increase over the prior year quarter.
Total revenue of over $1.1 billion, a 19% year-over-year increase, led by robust growth in marine, fitness and outdoor.
Gross margin and operating margin were 60.2% and 28.6%, respectively.
Operating income of $317 million, increasing 21% over the prior year quarter.
GAAP diluted EPS was $1.63 and pro forma diluted EPS was $1.58, increasing 24% over the prior year quarter.
Garmin
Garmin
Garmin Revenue by Segment
Garmin Revenue by Geographic Location
Forward Guidance
Garmin expects full year 2020 revenue of approximately $4.0 billion with growth in the marine, fitness, and outdoor segments partially offset by declines in the auto and aviation segments. They expect full year pro forma EPS to be approximately $4.70 based upon gross margin of approximately 59.0%, operating margin of approximately 24.0% and a full year pro forma effective tax rate of approximately 10.0%.
Positive Outlook
- Full year 2020 revenue of approximately $4.0 billion
- Marine segment revenue growth of approximately 25%
- Fitness segment revenue growth of approximately 20%
- Outdoor segment revenue growth of approximately 15%
- Full year pro forma EPS to be approximately $4.70
Challenges Ahead
- Aviation segment revenue decline of approximately 17%
- Auto segment revenue decline of approximately 20%
- Gross margin of approximately 59.0%
- Operating margin of approximately 24.0%
- Full year pro forma effective tax rate of approximately 10.0%
Revenue & Expenses
Visualization of income flow from segment revenue to net income