Dec 30, 2023

Garmin Q4 2023 Earnings Report

Garmin's Q4 2023 earnings report was released, showcasing revenue growth and expanded margins.

Key Takeaways

Garmin reported a strong fourth quarter with a 13% increase in consolidated revenue to $1.48 billion. Gross margin expanded to 58.3%, and operating margin reached 23.0%. GAAP EPS was $2.82, and pro forma EPS was $1.72, representing 27% growth in pro forma EPS.

Consolidated revenue increased by 13% year-over-year, reaching $1.48 billion.

Gross margin expanded to 58.3% compared to 57.0% in the prior year quarter.

Operating margin improved to 23.0% from 20.5% in the prior year quarter.

GAAP EPS was $2.82, and pro forma EPS grew by 27% to $1.72.

Total Revenue
$1.48B
Previous year: $1.31B
+13.5%
EPS
$1.72
Previous year: $1.35
+27.4%
Gross Margin
58.3%
Previous year: 57%
+2.3%
Operating Margin
23%
Previous year: 20.5%
+12.2%
Effective Tax Rate
9%
Previous year: 11.1%
-18.9%
Gross Profit
$864M
Previous year: $745M
+16.0%
Cash and Equivalents
$1.69B
Previous year: $1.28B
+32.4%
Free Cash Flow
$417M
Previous year: $309M
+34.9%
Total Assets
$8.6B
Previous year: $7.73B
+11.3%

Garmin

Garmin

Garmin Revenue by Segment

Garmin Revenue by Geographic Location

Forward Guidance

Garmin expects full year 2024 revenue of approximately $5.75 billion, an increase of approximately 10% over 2023. They expect full year pro forma EPS to be approximately $5.40 based upon gross margin of approximately 56.5%, operating margin of approximately 20.0% and pro forma effective tax rate of approximately 15.5%.

Positive Outlook

  • Full year 2024 revenue is expected to be approximately $5.75 billion, a 10% increase over 2023.
  • Gross margin is projected to be approximately 56.5%.
  • Operating margin is anticipated to be around 20.0%.
  • Pro forma effective tax rate is expected to be approximately 15.5%.
  • Full year pro forma EPS is forecasted to be approximately $5.40.

Revenue & Expenses

Visualization of income flow from segment revenue to net income