Garmin Reports Impressive Financial Growth in Q4 2024 and Full Year Results
Garmin Ltd. (NYSE: GRMN) recently announced its remarkable financial performance for the fourth quarter and the entire fiscal year 2024. The reported figures reveal a clear upward trend with substantial growth across various segments, showcasing the company’s resilience and innovation in a competitive market.
In the fourth quarter that ended on December 28, 2024, Garmin reported consolidated revenues of $1.82 billion, marking a 23% increase compared to the same quarter in the previous year. The strong financial results were driven by an expanded gross margin, which rose to 59.3% from 58.3% year-over-year. Furthermore, the operating margin improved to 28.3%, significantly higher than the 23.0% recorded in Q4 2023.
Operating income was particularly impressive at $516 million, representing a 52% increase year-on-year. Noteworthy is the pro forma earnings per share (EPS) which surged by 40%, recording $2.41 compared to $1.72 in the prior year quarter.
Garmin also achieved a significant milestone with over 300 million units shipped since its inception, further solidifying its position in the consumer electronics market. Among the accolades, the company’s Runway Occupancy Awareness technology received the prestigious Laureate Award from the Aviation Week Network, a testament to Garmin's commitment to pioneering advancements in aviation technology. Additionally, it has ranked No. 1 for 21 consecutive years in Professional Pilot's Avionics Manufacturers Product Support Survey.
For the entire fiscal year, Garmin enjoyed robust momentum, celebrating its 35th anniversary with record consolidated revenue of $6.30 billion, an impressive 20% increase over 2023. All operating segments contributed to this growth, with Garmin reporting an expanded gross margin of 58.7% and an operating margin of 25.3%.
The operating income for the year reached $1.59 billion, which is a 46% jump from the previous year, showcasing exceptional performance. The company’s net income came in at $1.41 billion, translating to a diluted EPS of $7.30, a commendable 32% growth from last year’s $5.59 per share.
A closer look at Garmin's various segments reveals that the fitness segment saw a revenue increase of 31% in Q4, largely propelled by heightened demand for wearables. The success of the newly launched Lily 2 Active smartwatch, characterized by its sleek design and long battery life, contributed significantly to this growth.
The outdoor segment recorded a 29% increase in revenue, benefiting from heightened interest in adventure watches. The Approach R50, a portable golf launch monitor, was a key launch that strengthened this category.
In aviation, overall revenue grew by 9% due to robust contributions from both OEM and aftermarket sectors. Incremental improvements were noted in the marine segment, with a 5% increase in revenue, marking a steady growth trend.
The auto OEM segment, however, reported a 30% revenue increase, attributed to higher volumes of domain controller shipments despite operating at a slight loss.
Looking forward, Garmin has set optimistic expectations for fiscal year 2025, projecting a revenue of approximately $6.80 billion, indicating an 8% growth from 2024 levels. The company anticipates a pro forma EPS around $7.80, supported by projected gross and operating margins of 58.7% and 25%, respectively.
Overall, Garmin's performance in Q4 2024 and throughout the year reflects its strategic focus on innovation and customer satisfaction, setting a solid foundation for continued growth in 2025 and beyond. This trend not only reinforces Garmin's leadership across its various segments but also highlights the company's potential to adapt and thrive in a fast-evolving market landscape.
Q4 2024 Performance Highlights
In the fourth quarter that ended on December 28, 2024, Garmin reported consolidated revenues of $1.82 billion, marking a 23% increase compared to the same quarter in the previous year. The strong financial results were driven by an expanded gross margin, which rose to 59.3% from 58.3% year-over-year. Furthermore, the operating margin improved to 28.3%, significantly higher than the 23.0% recorded in Q4 2023.
Operating income was particularly impressive at $516 million, representing a 52% increase year-on-year. Noteworthy is the pro forma earnings per share (EPS) which surged by 40%, recording $2.41 compared to $1.72 in the prior year quarter.
Garmin also achieved a significant milestone with over 300 million units shipped since its inception, further solidifying its position in the consumer electronics market. Among the accolades, the company’s Runway Occupancy Awareness technology received the prestigious Laureate Award from the Aviation Week Network, a testament to Garmin's commitment to pioneering advancements in aviation technology. Additionally, it has ranked No. 1 for 21 consecutive years in Professional Pilot's Avionics Manufacturers Product Support Survey.
Fiscal Year 2024 Overview
For the entire fiscal year, Garmin enjoyed robust momentum, celebrating its 35th anniversary with record consolidated revenue of $6.30 billion, an impressive 20% increase over 2023. All operating segments contributed to this growth, with Garmin reporting an expanded gross margin of 58.7% and an operating margin of 25.3%.
The operating income for the year reached $1.59 billion, which is a 46% jump from the previous year, showcasing exceptional performance. The company’s net income came in at $1.41 billion, translating to a diluted EPS of $7.30, a commendable 32% growth from last year’s $5.59 per share.
Segment Performance
A closer look at Garmin's various segments reveals that the fitness segment saw a revenue increase of 31% in Q4, largely propelled by heightened demand for wearables. The success of the newly launched Lily 2 Active smartwatch, characterized by its sleek design and long battery life, contributed significantly to this growth.
The outdoor segment recorded a 29% increase in revenue, benefiting from heightened interest in adventure watches. The Approach R50, a portable golf launch monitor, was a key launch that strengthened this category.
In aviation, overall revenue grew by 9% due to robust contributions from both OEM and aftermarket sectors. Incremental improvements were noted in the marine segment, with a 5% increase in revenue, marking a steady growth trend.
The auto OEM segment, however, reported a 30% revenue increase, attributed to higher volumes of domain controller shipments despite operating at a slight loss.
Future Outlook
Looking forward, Garmin has set optimistic expectations for fiscal year 2025, projecting a revenue of approximately $6.80 billion, indicating an 8% growth from 2024 levels. The company anticipates a pro forma EPS around $7.80, supported by projected gross and operating margins of 58.7% and 25%, respectively.
Overall, Garmin's performance in Q4 2024 and throughout the year reflects its strategic focus on innovation and customer satisfaction, setting a solid foundation for continued growth in 2025 and beyond. This trend not only reinforces Garmin's leadership across its various segments but also highlights the company's potential to adapt and thrive in a fast-evolving market landscape.
Topics Consumer Products & Retail）
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