Sep 24, 2022

Garmin Q3 2022 Earnings Report

Announced results for the third quarter ended September 24, 2022.

Key Takeaways

Garmin's consolidated revenue was $1.14 billion, a 4% decrease compared to the prior year quarter. Gross margin expanded to 58.8%, and operating margin was 21.0%. GAAP EPS was $1.09 and pro forma EPS was $1.24.

Consolidated revenue of $1.14 billion, a 4% decrease compared to the prior year quarter, was unfavorably impacted by approximately $70 million due to the year-over-year strengthening of the U.S. Dollar relative to other major currencies

Gross margin expanded to 58.8%, and operating margin was 21.0%

Operating income was $239 million, a 15% decrease compared to the prior year quarter

GAAP EPS was $1.09 and pro forma EPS was $1.24

Total Revenue
$1.14B
Previous year: $1.19B
-4.4%
EPS
$1.24
Previous year: $1.41
-12.1%
Gross Margin
58.8%
Previous year: 58.4%
+0.7%
Operating Margin
21%
Previous year: 23.7%
-11.4%
Effective Tax Rate
4.3%
Previous year: 5.9%
-27.1%
Gross Profit
$670M
Previous year: $696M
-3.7%
Cash and Equivalents
$1.08B
Previous year: $1.64B
-34.0%
Free Cash Flow
$104M
Previous year: $204M
-49.0%
Total Assets
$7.63B
Previous year: $7.57B
+0.7%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

We now anticipate revenue of approximately $4.85 billion, gross margin of 57.5%, operating margin of 20.7%, and a full year effective tax rate of 8.0% resulting in EPS of approximately $4.95

Revenue & Expenses

Visualization of income flow from segment revenue to net income