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Sep 26, 2020
Garmin Q3 2020 Earnings Report
Reported record revenue and profits driven by demand for active lifestyle products.
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
Revenue by Segment
Fitness Revenue
CapyFin.comOutdoor Revenue
CapyFin.comAviation Revenue
CapyFin.comMarine Revenue
CapyFin.comAuto OEM Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPAC Revenue
CapyFin.com 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