Garmin Q4 2024 Earnings Report
Key Takeaways
Garmin achieved record revenue of $1.82 billion in Q4 2024, marking a 23% YoY increase. The company also saw a significant expansion in operating margin to 28.3% and strong growth in the Fitness and Outdoor segments. However, net income declined 19.6% YoY, primarily due to tax-related impacts.
Revenue grew 23% YoY to $1.82 billion, with all segments showing positive growth.
Operating margin expanded to 28.3%, up from 23.0% in Q4 2023.
Net income declined 19.6% YoY, impacted by tax expenses.
Fitness and Outdoor segments led growth, increasing 31% and 29% YoY, respectively.
Garmin Revenue
Garmin EPS
Garmin Revenue by Segment
Garmin Revenue by Geographic Location
Forward Guidance
Garmin expects 2025 revenue of approximately $6.80 billion, reflecting 8% YoY growth, with an expected operating margin of 25.0% and pro forma EPS of $7.80.
Positive Outlook
- Full-year 2025 revenue projected to grow 8% to $6.80 billion.
- Pro forma EPS expected to reach $7.80.
- Gross margin forecasted to remain strong at 58.7%.
- Operating margin expected at 25.0%.
- Continued strong product pipeline and innovation.
Challenges Ahead
- Increased tax rate pressures due to global minimum tax requirements.
- Potential foreign currency impacts remain uncertain.
- Macroeconomic conditions could affect consumer spending.
- Increased R&D and personnel costs may impact margins.
- Competition in key segments could pressure pricing and profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income