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Dec 28, 2019
Garmin Q4 2019 Earnings Report
Reported strong revenue and operating income growth.
Key Takeaways
Garmin Ltd. reported an 18% increase in total revenue, reaching $1.102 billion in Q4 2019. Operating income increased by 24% to $277 million, and GAAP EPS was $1.89. The company's fitness, aviation, marine, and outdoor segments collectively grew by 24% over the prior year quarter.
Total revenue increased by 18% to $1.102 billion, with fitness, aviation, marine and outdoor collectively increasing 24% over the prior year quarter.
Operating margin improved to 25.1% compared to 23.9% in the prior year quarter.
GAAP EPS was $1.89 and pro forma EPS was $1.29, representing 26% growth over the prior year quarter.
The ForceTM trolling motor and GPSMAP® 86i were awarded the highly competitive DAME design award at METSTRADE
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 2020 revenue of approximately $4.0 billion, with growth in fitness, outdoor, and marine segments partially offset by declines in the auto segment. Full year pro forma EPS is expected to be approximately $4.60, based on gross margin of approximately 59.2%, operating margin of approximately 23.5%, and a pro forma effective tax rate of approximately 10.0%.
Positive Outlook
- Fitness ~10%
- Outdoor ~10%
- Marine ~10%
- Aviation ~0%
- Gross Margin ~59.2%
Challenges Ahead
- Auto ~(5%)
- Operating Margin ~23.5%
- Tax Rate ~10.0%
- EPS ~$4.60
Revenue & Expenses
Visualization of income flow from segment revenue to net income