Sep 25, 2021

Garmin Q3 2021 Earnings Report

Reported record third quarter revenue.

Key Takeaways

Garmin reported a strong third quarter with record consolidated revenue driven by strong demand for active lifestyle products and impressive double-digit growth in the marine and aviation segments. The company's performance exceeded expectations, leading to an updated full-year revenue and EPS guidance.

Total revenue reached $1.19 billion, a 7% increase over the prior year quarter.

Gross and operating margin were 58.4% and 23.7%, respectively.

GAAP EPS was $1.34 and pro forma EPS was $1.41.

Strong demand for active lifestyle products continued, with marine and aviation segments recording impressive double-digit growth.

Total Revenue
$1.19B
Previous year: $1.11B
+7.5%
EPS
$1.41
Previous year: $1.58
-10.8%
Gross Margin
58.4%
Previous year: 60.2%
-3.0%
Operating Margin
23.7%
Previous year: 28.6%
-17.1%
Effective Tax Rate
5.9%
Previous year: 6.9%
-14.5%
Gross Profit
$696M
Previous year: $668M
+4.2%
Cash and Equivalents
$1.64B
Previous year: $1.22B
+34.0%
Free Cash Flow
$204M
Previous year: $236M
-13.4%
Total Assets
$7.57B
Previous year: $6.55B
+15.6%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

Based on the strong performance in the first three quarters of 2021, the company updated its full year guidance, anticipating revenue of approximately $4.95 billion and a full year pro forma EPS of approximately $5.60.

Positive Outlook

  • Anticipate revenue of approximately $4.95 billion
  • Projected growth in all segments
  • Gross margin of approximately 58.2%
  • Operating margin of approximately 24.0%
  • Full year pro forma effective tax rate of approximately 11.5%

Revenue & Expenses

Visualization of income flow from segment revenue to net income