Garmin Ltd. (GRMN) Surges Ahead with Stellar Q4 Results and Bright Outlook for 2024

Garmin Ltd. (GRMN) Surges Ahead with Stellar Q4 Results and Bright Outlook for 2024

Garmin exceeded Q4 expectations with a 13% revenue increase and significant earnings growth.
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In the latest financial disclosures, Garmin Ltd. (NYSE: GRMN) has outpaced industry forecasts, showcasing a robust performance for the fourth quarter ended December 30, 2023. The company reported a consolidated revenue of $1.48 billion, marking a 13% increase from the previous year. This growth was driven by significant achievements across various segments, including a 27% increase in operating income to $340 million and a gross margin expansion to 58.3% from 57.0%.

Notably, Garmin’s GAAP EPS stood at $2.82, with pro forma EPS at $1.72, representing a 27% growth over the prior year quarter.

Garmin Outperforms Expectations in Q4

Comparing Garmin’s current performance to the anticipated figures, the company has significantly exceeded expectations. Analysts had projected earnings per share (EPS) of $1.4 and revenue of $1.43 billion for the quarter. Garmin’s actual revenue of $1.48 billion and pro forma EPS of $1.72 outstrip these forecasts, underlining the company’s ability to outperform in a challenging market environment. This overachievement is attributed to robust product demand across Garmin’s diverse portfolio, including fitness wearables, outdoor adventure watches, and marine electronics

Guidance

Looking ahead, Garmin provides optimistic guidance for the fiscal year 2024, with expectations of approximately $5.75 billion in revenue, indicating a 10% increase over 2023. The company also anticipates a pro forma EPS of roughly $5.40, based on an estimated gross margin of 56.5% and an operating margin of around 20.0%. This forward-looking stance reflects Garmin’s confidence in its product pipeline and strategic initiatives to sustain growth and market expansion.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.