Dec 25, 2021

Garmin Q4 2021 Earnings Report

Garmin reported record consolidated revenue with growth in key segments, but experienced a decrease in operating income compared to the prior year quarter.

Key Takeaways

Garmin Ltd. announced its Q4 and Fiscal Year 2021 results, highlighted by record consolidated revenue of $1.39 billion for the quarter, a 3% increase over the prior year quarter. However, operating income decreased by 15% to $315 million. GAAP EPS was $1.48 and pro forma EPS was $1.55.

Record consolidated revenue of $1.39 billion, a 3% increase over the prior year quarter.

Gross and operating margins were 55.5% and 22.6%, respectively.

Operating income of $315 million, a 15% decrease compared to the prior year quarter.

GAAP EPS was $1.48 and pro forma EPS was $1.55.

Total Revenue
$1.39B
Previous year: $1.35B
+3.0%
EPS
$1.55
Previous year: $1.73
-10.4%
Gross Margin
55.5%
Previous year: 58.5%
-5.1%
Operating Margin
22.6%
Previous year: 27.5%
-17.8%
Effective Tax Rate
7.4%
Previous year: 14.8%
-50.0%
Gross Profit
$772M
Previous year: $791M
-2.4%
Cash and Equivalents
$1.5B
Previous year: $1.46B
+2.7%
Free Cash Flow
$49.3M
Previous year: $387M
-87.3%
Total Assets
$7.85B
Previous year: $7.03B
+11.7%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

Garmin expects full year 2022 revenue of approximately $5.5 billion, an increase of approximately 10% over 2021. They expect full year pro forma EPS to be approximately $5.90 based upon gross margin of approximately 57.5%, operating margin of approximately 22.8% and pro forma effective tax rate of approximately 10.5%.

Positive Outlook

  • Full year 2022 revenue expected to be approximately $5.5 billion, a 10% increase over 2021.
  • Gross margin of approximately 57.5% is expected.
  • Operating margin of approximately 22.8% is anticipated.
  • Pro forma effective tax rate of approximately 10.5% is projected.
  • Full year pro forma EPS is expected to be approximately $5.90.

Revenue & Expenses

Visualization of income flow from segment revenue to net income