Dec 31, 2022

Garmin Q4 2022 Earnings Report

Reported a decrease in revenue but an expansion in gross margin.

Key Takeaways

Garmin Ltd. announced its Q4 2022 results, with a consolidated revenue of $1.31 billion, a 6% decrease compared to the prior year quarter. Despite the revenue decrease, the gross margin expanded to 57.0%. The company's GAAP EPS was $1.53, and the pro forma EPS was $1.35.

Consolidated revenue decreased by 6% to $1.31 billion compared to the prior year quarter.

Gross margin expanded to 57.0% from 55.5% in the prior year quarter.

Operating margin was 20.5% compared to 22.6% in the prior year quarter.

GAAP EPS was $1.53 and pro forma EPS was $1.35.

Total Revenue
$1.31B
Previous year: $1.39B
-6.2%
EPS
$1.35
Previous year: $1.55
-12.9%
Gross Margin
57%
Previous year: 55.5%
+2.7%
Operating Margin
20.5%
Previous year: 22.6%
-9.3%
Effective Tax Rate
11.1%
Previous year: 7.4%
+50.0%
Gross Profit
$745M
Previous year: $772M
-3.5%
Cash and Equivalents
$1.28B
Previous year: $1.5B
-14.6%
Free Cash Flow
$309M
Previous year: $49.3M
+527.7%
Total Assets
$7.73B
Previous year: $7.85B
-1.6%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

The company expects full year 2023 revenue of approximately $5.00 billion, an increase of approximately 3% over 2022. They expect their full year pro forma EPS to be approximately $5.15.

Positive Outlook

  • Full year 2023 revenue expected to be approximately $5.00 billion, an increase of approximately 3% over 2022.
  • Gross margin of approximately 57.5%.
  • Operating margin of approximately 20.3%.
  • Pro forma effective tax rate of approximately 8.0%.
  • Full year pro forma EPS to be approximately $5.15.

Revenue & Expenses

Visualization of income flow from segment revenue to net income