GRMN
Garmin LTD
NYSE
8-K: Garmin Announces Record Full-Year Revenue and Profit, Proposes 20% Dividend Increase
Sentiment:
Earnings Release
19 February 2025 7:00 AM
Garmin reports record full-year revenue and profit for 2024 and proposes a 20% dividend increase.
Better than expected
Garmin reported record full-year revenue and profit, exceeding previous performance.
The company's pro forma EPS grew by 32%, indicating strong earnings growth.
Garmin's guidance for 2025 suggests continued growth and profitability.
Summary
- Garmin Ltd. announced its financial results for the fourth quarter and fiscal year ended December 28, 2024.
- The company reported record full-year revenue of $6.30 billion, a 20% increase compared to the prior year.
- All segments posted record full-year revenue.
- Full year gross margin expanded to 58.7% compared to 57.5% in the prior year.
- Full year operating margin expanded to 25.3% compared to 20.9% in the prior year.
- Record operating income of $1.59 billion was reported, a 46% increase compared to the prior year.
- GAAP EPS was $7.30 and pro forma EPS was a record $7.39, representing 32% growth in pro forma EPS over the prior year.
- For the fourth quarter, consolidated revenue was $1.82 billion, a 23% increase compared to the prior year quarter.
- The company expects full-year 2025 revenue of approximately $6.80 billion, an increase of approximately 8% over 2024.
- The Board of Directors intends to recommend a cash dividend of $3.60 per share for approval at the annual meeting on June 6, 2025.
Sentiment
Score: 9
Explanation: The document presents a highly positive outlook with record financial results and strong growth projections. The proposed dividend increase further reinforces the positive sentiment.
Positives
- Record full-year revenue and profit were achieved.
- All segments posted record full-year revenue.
- Gross and operating margins expanded for both the fourth quarter and the full year.
- The company is proposing a 20% increase in the dividend.
- Strong growth in the fitness and outdoor segments.
- Garmin ended the quarter with approximately $3.7 billion in cash and marketable securities.
Negatives
- GAAP diluted EPS decreased by 20% in the fourth quarter.
- The auto OEM segment recorded an operating loss of $9 million in the fourth quarter.
- Foreign currency losses impacted other income (expense) for the quarter.
Risks
- The release includes forward-looking statements that are subject to various risks and uncertainties.
- These risks are described in the Annual Report on Form 10-K for the year ended December 28, 2024.
- The company's future results could differ materially as a result of these risk factors.
Future Outlook
Garmin expects full-year 2025 revenue of approximately $6.80 billion, an increase of approximately 8% over 2024. They expect full-year pro forma EPS to be approximately $7.80 based upon gross margin of approximately 58.7%, operating margin of approximately 25.0% and pro forma effective tax rate of approximately 16.5%.
Management Comments
- 2024 was a year of remarkable growth and achievement for Garmin, resulting in record full-year consolidated revenue and record full-year revenue in all five of our segments, as well as record full-year consolidated operating income.
- We are entering 2025 with continued strong momentum from our robust product lineup and have many product launches planned during the year.
- I am very proud of what we accomplished in 2024 and look forward to all that 2025 will bring.
Industry Context
Garmin's strong performance reflects continued demand for its products across various segments, including fitness, outdoor, aviation, marine, and auto OEM. The company's focus on innovation and product development has allowed it to maintain a competitive edge in these markets.
Comparison to Industry Standards
- Garmin's operating margin of 25.3% for the full year is strong compared to other consumer electronics and technology companies.
- Comparable companies such as Apple and Fitbit have varying operating margins depending on the period, but Garmin's performance indicates efficient operations and strong profitability.
- Garmin's consistent ranking as No. 1 in Professional Pilots Avionics Manufacturers Product Support Survey for 21 consecutive years highlights its commitment to customer satisfaction and product quality, setting a high standard in the aviation industry.
Stakeholder Impact
- Shareholders will benefit from the proposed dividend increase and the company's strong financial performance.
- Employees may benefit from the company's continued growth and success.
- Customers will continue to have access to innovative products and services.
- Suppliers may benefit from increased demand for Garmin's products.
- Creditors are likely to view the company favorably due to its strong financial position.
Next Steps
- The Board of Directors intends to recommend a cash dividend of $3.60 per share for approval at the annual meeting on June 6, 2025.
- The company plans to continue launching new products in 2025.
- Garmin will continue to execute its share repurchase program.
Key Dates
- December 30, 2023: End of fiscal year 2023
- December 28, 2024: End of fiscal year 2024 and end of Q4 2024
- February 19, 2025: Date of the earnings release and earnings call
- March 14, 2025: Record date for the final dividend installment of $0.75 per share
- March 28, 2025: Payment date for the final dividend installment of $0.75 per share
- June 6, 2025: Annual meeting to approve a cash dividend of $3.60 per share
- June 16, 2025: Record Date for dividend of $0.90 per share
- June 27, 2025: Dividend Date for dividend of $0.90 per share
- September 12, 2025: Record Date for dividend of $0.90 per share
- September 26, 2025: Dividend Date for dividend of $0.90 per share
- December 12, 2025: Record Date for dividend of $0.90 per share
- December 26, 2025: Dividend Date for dividend of $0.90 per share
- March 13, 2026: Record Date for dividend of $0.90 per share
- March 27, 2026: Dividend Date for dividend of $0.90 per share
- February 18, 2026: Archive of the live webcast will be available until this date
Keywords
financial results, revenue, profit, dividend, EPS, Garmin, GRMN
GRMN
Garmin LTD
NYSE
Sector: TBD
Filings with Classifications
Better than expected
30 April 2025 7:00 AM
Earnings Release
- Garmin's Q1 2025 revenue and operating income reached record levels, exceeding expectations.
- Pro forma EPS grew by 13%, indicating strong profitability.
- The company is maintaining its full-year pro forma EPS guidance, suggesting confidence in future performance.
Better than expected
19 February 2025 7:00 AM
Annual Results
- Net sales increased 20% in fiscal year 2024 when compared to the year-ago period.
- Gross profit dollars in fiscal year 2024 increased 23%, primarily due to the increase in net sales compared to the year-ago period.
- Total operating income increased 46% in absolute dollars and increased 440 basis points as a percent of revenue in fiscal year 2024 compared to fiscal year 2023.
Better than expected
19 February 2025 7:00 AM
Earnings Release
- Garmin reported record full-year revenue and profit, exceeding previous performance.
- The company's pro forma EPS grew by 32%, indicating strong earnings growth.
- Garmin's guidance for 2025 suggests continued growth and profitability.
Worse than expected
29 November 2024 5:00 PM
Annual Report Amendment
- The document indicates worse than expected results because the company had to amend its annual report due to omissions of material information regarding related party transactions.
Better than expected
30 October 2024 7:00 AM
Quarterly Report
- The company's net sales, gross profit, operating income, and net income all significantly exceeded the prior year's results, indicating better than expected performance.
Better than expected
30 October 2024 7:00 AM
Quarterly Report
- Garmin's Q3 results exceeded expectations with record revenue and operating income, leading to an increase in full-year guidance.
Better than expected
31 July 2024 7:00 AM
Quarterly Report
- The company's net sales, operating income, and net income all increased significantly compared to the same periods in the previous year, indicating better than expected results.
Better than expected
31 July 2024 7:00 AM
Quarterly Report
- Garmin's revenue and EPS exceeded expectations, leading to an increase in full-year guidance.
- The company's operating income grew by 20%, surpassing previous projections.
- The fitness and auto OEM segments showed particularly strong growth, exceeding anticipated performance.
Capital raise
11 June 2024 11:57 AM
Annual General Meeting Results
- The shareholders approved the renewal of Garmin's existing capital band, giving the Board of Directors authority to issue new shares or cancel shares for a one-year period ending on June 7, 2025.
- This provides the company with the flexibility to raise capital if needed.
Better than expected
1 May 2024 7:00 AM
Quarterly Report
- The company's net sales, gross profit, and operating income all significantly exceeded the prior year's results.
- The fitness segment showed a substantial increase in operating income, demonstrating strong performance.
- Cash flow from operations increased substantially, providing financial flexibility.
Better than expected
1 May 2024 7:00 AM
Quarterly Report
- Garmin's revenue, operating income, and EPS all exceeded expectations, showing significant year-over-year growth.
- The company achieved record first quarter revenue in multiple segments, indicating strong market performance.
- The expansion of gross and operating margins demonstrates improved profitability.
Better than expected
21 February 2024 7:02 AM
Quarterly Report
- The company reported record full-year revenue and strong growth in several segments, exceeding expectations.
- The fourth-quarter results showed significant increases in revenue, gross margin, and operating income, indicating better-than-expected performance.
- The pro forma EPS growth of 27% in the fourth quarter and 9% for the full year exceeded expectations.
Better than expected
21 February 2024 7:00 AM
Annual Report
- Net income increased 32% to $1,289.6 million from $973.6 million in the prior year.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.