GRMN
Garmin LTD
NYSE
8-K: Garmin Reports Record Q1 2025 Results, Maintains Full-Year EPS Guidance
Sentiment:
Earnings Release
30 April 2025 7:00 AM
Garmin announces record first quarter operating results and maintains full year EPS guidance.
Better than expected
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.
Summary
- Garmin Ltd. announced its financial results for the first quarter ended March 29, 2025.
- The company reported record consolidated revenue of $1.54 billion, an 11% increase compared to the prior year quarter.
- Gross margin was 57.6% compared to 58.1% in the prior year quarter.
- Operating margin expanded to 21.7% from 21.6% in the prior year quarter.
- Record operating income was $333 million, a 12% increase compared to the prior year quarter.
- GAAP EPS was $1.72 and pro forma EPS was $1.61, representing 13% growth in pro forma EPS over the prior year quarter.
- The company is maintaining its full year 2025 pro forma EPS guidance of $7.80.
- Full year 2025 revenue is expected to be approximately $6.85 billion.
- The Board will recommend a cash dividend of $3.60 per share for approval at the annual meeting on June 6, 2025.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with record revenue and operating income, strong growth in key segments, and maintained EPS guidance. While there are some challenges, the overall tone is optimistic and confident.
Positives
- Record consolidated revenue of $1.54 billion, an 11% increase year-over-year.
- Record operating income of $333 million, a 12% increase year-over-year.
- Pro forma EPS increased by 13% to $1.61.
- The outdoor segment revenue increased 20% due to growth in adventure watches.
- The auto OEM segment revenue increased 31% due to growth in domain controllers.
- Garmin was recognized as one of the Top 10 Most Trustworthy Companies in America within its industry by Newsweek.
- Garmin was named Supplier of the Year by Cirrus Aircraft and Independent Boat Builders, Inc. (IBBI).
Negatives
- Marine segment revenue decreased 2% in the first quarter, primarily due to the timing of promotions.
- The auto OEM segment recorded an operating loss of $9 million in the quarter.
- Gross margin decreased slightly from 58.1% to 57.6%.
Risks
- Recent developments in global trade have created an atmosphere of uncertainty.
- The company's forward-looking statements are subject to risk factors and uncertainties described in their SEC filings.
- Fluctuations in foreign currency exchange rates and tariffs could impact future financial results.
Future Outlook
Garmin is updating its full year 2025 revenue expectations to approximately $6.85 billion and maintaining its pro forma EPS guidance of $7.80.
Management Comments
- We delivered another quarter of outstanding financial results which we attribute to our strong lineup of highly differentiated products that customers desire.
- While recent developments in global trade have created an atmosphere of uncertainty for many companies, we remain optimistic because of the resilience and flexibility our vertically integrated and highly diversified business model offers.
- We are very pleased with our results so far, and we look forward to the opportunities ahead as the year continues to unfold.
Industry Context
Garmin's strong performance in the outdoor and auto OEM segments reflects growing demand for wearables and automotive technology solutions. The company's recognition as a trustworthy brand and supplier of the year highlights its competitive position within the industry.
Comparison to Industry Standards
- Garmin's gross margin of 57.6% is competitive with other electronics manufacturers.
- Garmin's operating margin of 21.7% is strong compared to industry averages.
- The company's growth in the outdoor segment is in line with the increasing popularity of adventure watches and GPS devices.
- The growth in the auto OEM segment reflects the increasing integration of technology in vehicles, similar to trends seen with companies like Tesla and NVIDIA.
Stakeholder Impact
- Shareholders will benefit from the increased revenue, profitability, and dividend recommendation.
- Employees may experience increased job security and potential for career advancement.
- Customers will have access to innovative and high-quality products.
- Suppliers will benefit from Garmin's continued growth and demand for components.
- Creditors will have increased confidence in Garmin's ability to meet its financial obligations.
Next Steps
- The Board will recommend a cash dividend of $3.60 per share for approval at the annual meeting on June 6, 2025.
- Deliveries of the Pilatus PC-12 PRO aircraft with the G3000 PRIME integrated flight deck are anticipated to begin in the second half of 2025.
Key Dates
- March 29, 2025: End of the first quarter for which financial results are reported.
- April 30, 2025: Date of the earnings release and 8-K filing.
- June 6, 2025: Date of the annual meeting where the Board will recommend a cash dividend.
- April 29, 2026: End date for the availability of the live webcast archive.
Keywords
financial results, first quarter, revenue, EPS, operating income, Garmin, guidance
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.