Garmin (GRMN) came out with quarterly earnings of $1.58 per share, beating the Zacks Consensus Estimate of $1.40 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for nonrecurring items. This maker of wearable technologies is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +42.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This quarterly report rep ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Garmin reported impressive Q2 2024 growth in revenue and operating profit, exceeding expectations and leading to raised full-year guidance [CEO Statement](index=2&type=section&id=CEO%20Statement) Garmin's CEO highlighted impressive growth in revenue and operating profit, driven by innovation and diversification, leading to raised full-year guidance - Garmin delivered another impressive quarter of growth in both **revenue and operating profit**, made possible by an innovative product lineup and the strength of our diversified business model[27](index=27&type=chunk) - The company is pleased with its results so far in 2024, which have **exceeded expectations** and give confidence to **raise full year revenue and EPS guidance**[27](index=27&type=chunk) [Q2 2024 Highlights](index=1&type=section&id=Q2%202024%20Highlights) Garmin achieved record Q2 2024 revenue of **$1.51 billion**, with strong margins and operational milestones, including one million domain controllers shipped Q2 2024 Financial Highlights | Metric | Q2 2024 (in millions) | YoY Change | | :------------------------- | :-------------------- | :--------- | | Consolidated Revenue | $1,510 | 14% | | Gross Margin | 57.3% | | | Operating Margin | 22.7% | | | Operating Income | $342 | 20% | | GAAP EPS | $1.56 | | | Pro Forma EPS | $1.58 | 9% | - Shipped the **one millionth domain controller** to Auto OEM customers[29](index=29&type=chunk) - Garmin Health has supported over **1,000 research studies** in areas such as sleep, well-being, rehabilitation and physical activity[29](index=29&type=chunk) [Consolidated Financial Performance](index=5&type=section&id=Consolidated%20Financial%20Performance) Garmin demonstrated strong financial growth for the 26-weeks ended June 29, 2024, with increased net sales, operating income, and cash flows [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the 26-weeks ended June 29, 2024, net sales grew 17% to **$2.89 billion**, with operating income up 33% to **$640.4 million** and diluted EPS at **$2.99** Condensed Consolidated Statements of Income (26-Weeks Ended) | Metric (26-Weeks Ended) | June 29, 2024 (in thousands) | July 1, 2023 (in thousands) | YoY Change | | :---------------------- | :--------------------------- | :-------------------------- | :--------- | | Net sales | $2,888,320 | $2,468,219 | 17% | | Cost of goods sold | $1,223,290 | $1,055,983 | 16% | | Gross profit | $1,665,030 | $1,412,236 | 18% | | Operating income | $640,437 | $481,337 | 33% | | Net income | $576,591 | $490,266 | 18% | | Diluted EPS | $2.99 | $2.56 | 17% | - Total operating expenses increased by **10% to $1,024,593 thousand** for the 26-weeks ended June 29, 2024, primarily due to higher research and development and selling, general and administrative expenses[23](index=23&type=chunk)[31](index=31&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 29, 2024, total assets reached **$8.88 billion**, with cash and equivalents at **$1.94 billion**, while total current liabilities significantly increased Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 29, 2024 | December 30, 2023 | | :------------------------------ | :------------ | :---------------- | | Total assets | $8,883,322 | $8,603,569 | | Cash and cash equivalents | $1,937,483 | $1,693,452 | | Marketable securities | $288,659 | $274,618 | | Inventories | $1,319,643 | $1,345,955 | | Total current liabilities | $1,624,323 | $1,310,687 | | Dividend payable | $432,569 | $139,997 | | Total stockholders' equity | $7,004,982 | $7,012,060 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the 26-weeks ended June 29, 2024, operating cash flow increased 25% to **$690.6 million**, while investing activities more than doubled to **$143.2 million** Condensed Consolidated Statements of Cash Flows (26-Weeks Ended) | Cash Flow Activity (26-Weeks Ended) | June 29, 2024 (in thousands) | July 1, 2023 (in thousands) | | :---------------------------------- | :--------------------------- | :-------------------------- | | Net cash provided by operating activities | $690,626 | $552,912 | | Net cash used in investing activities | $(143,157) | $(70,134) | | Net cash used in financing activities | $(285,693) | $(337,074) | | Net increase in cash, cash equivalents, and restricted cash | $244,015 | $146,303 | | Cash, cash equivalents, and restricted cash at end of period | $1,938,171 | $1,426,215 | - Purchases of marketable securities significantly increased to **$281,297 thousand** for the 26-weeks ended June 29, 2024, compared to **$68,978 thousand** in the prior year period[1](index=1&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Garmin's segments showed varied performance, with strong growth in Fitness, Marine, and Auto OEM, while Outdoor declined and Aviation remained flat [Overview of Segment Performance](index=8&type=section&id=Overview%20of%20Segment%20Performance) For the 26-weeks ended June 29, 2024, Fitness, Marine, and Auto OEM segments saw significant sales growth, with Auto OEM's operating loss decreasing Segment Performance (26-Weeks Ended June 29, 2024) | Segment (26-Weeks Ended) | Net Sales (June 29, 2024, in thousands) | YoY Change | Operating Income (June 29, 2024, in thousands) | | :----------------------- | :-------------------------------------- | :--------- | :--------------------------------------------- | | Fitness | $771,296 | 33% | $175,743 | | Outdoor | $806,065 | 4% | $242,543 | | Aviation | $435,108 | 1% | $102,619 | | Marine | $599,689 | 21% | $147,583 | | Auto OEM | $276,162 | 48% | $(28,051) | [Fitness Segment](index=2&type=section&id=Fitness%20Segment) Fitness segment revenue grew **28%** in Q2 2024, driven by wearables, achieving **$108 million** operating income and launching the Edge® 1050 cycling computer - Revenue from the fitness segment increased **28%** in the second quarter primarily driven by growth in wearables[32](index=32&type=chunk) Fitness Segment Performance (Q2 2024) | Metric (Q2 2024) | Value (in thousands) | | :--------------- | :------------------- | | Net Sales | $428,404 | | Gross Margin | 57% | | Operating Margin | 25% | | Operating Income | $107,610 | - Launched the Edge® 1050 premium cycling computer with a vivid color touchscreen display, a built-in speaker for audible feedback, and Garmin Pay contactless payments[32](index=32&type=chunk) [Outdoor Segment](index=2&type=section&id=Outdoor%20Segment) Outdoor segment revenue decreased **2%** in Q2 2024 due to adventure watches, but maintained strong margins, generating **$136 million** operating income - Revenue from the outdoor segment decreased **2%** in the second quarter primarily due to declines in adventure watches[33](index=33&type=chunk) Outdoor Segment Performance (Q2 2024) | Metric (Q2 2024) | Value (in thousands) | | :--------------- | :------------------- | | Net Sales | $439,872 | | Gross Margin | 65% | | Operating Margin | 31% | | Operating Income | $135,592 | - Launched the Approach® Z30 smart laser range finder with the Range Relay feature and our first cellular based dog tracking collar, Alpha® LTE[33](index=33&type=chunk) [Aviation Segment](index=2&type=section&id=Aviation%20Segment) Aviation segment revenue was flat in Q2 2024, with OEM growth offsetting aftermarket declines, achieving **$50 million** operating income and high margins - Revenue from the aviation segment was relatively **flat** in the second quarter driven by growth in OEM product categories offset by declines in aftermarket product categories[34](index=34&type=chunk) Aviation Segment Performance (Q2 2024) | Metric (Q2 2024) | Value (in thousands) | | :--------------- | :------------------- | | Net Sales | $218,253 | | Gross Margin | 74% | | Operating Margin | 23% | | Operating Income | $50,485 | - Recognized by Embraer as a **Best Supplier for the ninth consecutive year** in the Electrical & Electrical Systems category for G3000® Prodigy Touch flight deck systems[34](index=34&type=chunk) [Marine Segment](index=2&type=section&id=Marine%20Segment) Marine segment revenue increased **26%** in Q2 2024, primarily due to the JL Audio® acquisition, generating **$60 million** operating income and expanding product lines - Revenue from the marine segment increased **26%** in the second quarter primarily driven by the acquisition of JL Audio®[35](index=35&type=chunk) Marine Segment Performance (Q2 2024) | Metric (Q2 2024) | Value (in thousands) | | :--------------- | :------------------- | | Net Sales | $272,953 | | Gross Margin | 54% | | Operating Margin | 22% | | Operating Income | $59,892 | - Expanded the Force® Kraken trolling motor series and introduced a new Panoptix™ PS-22 Ice Fishing Bundle, which won a **Best of Category award at ICAST**[35](index=35&type=chunk) [Auto OEM Segment](index=2&type=section&id=Auto%20OEM%20Segment) Auto OEM segment revenue grew **41%** in Q2 2024, driven by domain controllers, reducing its operating loss to **$12 million** and earning a global award - Revenue from the auto OEM segment increased **41%** during the second quarter primarily driven by growth in domain controllers[45](index=45&type=chunk) Auto OEM Segment Performance (Q2 2024) | Metric (Q2 2024) | Value (in thousands) | | :--------------- | :------------------- | | Net Sales | $147,189 | | Gross Margin | 16% | | Operating Loss | $(11,552) | - Received the '**2024 Global Award for excellence in Technology and Development**' from Yamaha Motor, recognized for our motorcycle infotainment solutions[45](index=45&type=chunk) [Geographic Sales](index=8&type=section&id=Geographic%20Sales) All geographic segments reported net sales growth for the 26-weeks ended June 29, 2024, with EMEA leading at 24% increase [Net Sales by Geography](index=8&type=section&id=Net%20Sales%20by%20Geography) For the 26-weeks ended June 29, 2024, EMEA led with **24%** sales growth, followed by Americas at **16%**, and APAC at **6%**, totaling **17%** overall growth Net Sales by Geography (26-Weeks Ended) | Geography (26-Weeks Ended) | June 29, 2024 (in thousands) | July 1, 2023 (in thousands) | YoY Change | | :------------------------- | :--------------------------- | :-------------------------- | :--------- | | Americas | $1,456,694 | $1,253,552 | 16% | | EMEA | $1,005,399 | $813,403 | 24% | | APAC | $426,227 | $401,264 | 6% | | Total Net Sales | $2,888,320 | $2,468,219 | 17% | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) Garmin provides non-GAAP measures like pro forma EPS and free cash flow for enhanced transparency, supplementing GAAP results [Introduction to Non-GAAP Measures](index=9&type=section&id=Introduction%20to%20Non-GAAP%20Measures) Non-GAAP measures, including pro forma EPS and free cash flow, offer enhanced transparency but are not substitutes for GAAP financial reporting - Non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP[5](index=5&type=chunk) - Management believes providing investors with an operating view consistent with how it manages the Company provides **enhanced transparency** into the operating results[5](index=5&type=chunk) [Pro Forma Net Income (Earnings) Per Share](index=9&type=section&id=Pro%20Forma%20Net%20Income%20%28Earnings%29%20Per%20Share) Pro forma diluted EPS increased **21% to $3.00** for the 26-weeks ended June 29, 2024, adjusting for foreign currency and discrete tax items - Management believes net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items is an important measure to permit a **consistent comparison** of the Company's performance between periods[8](index=8&type=chunk) Pro Forma Net Income (Earnings) Per Share (26-Weeks Ended) | Metric (26-Weeks Ended) | June 29, 2024 | July 1, 2023 | YoY Change | | :---------------------- | :------------ | :----------- | :--------- | | GAAP net income | $576,591 | $490,266 | 18% | | Pro forma net income | $578,710 | $473,414 | 22% | | GAAP diluted EPS | $2.99 | $2.56 | 17% | | Pro forma diluted EPS | $3.00 | $2.47 | 21% | - In the first half of 2024 and 2023, **no discrete tax items** were identified that would impact the pro forma effective tax rate[7](index=7&type=chunk) [Free Cash Flow](index=10&type=section&id=Free%20Cash%20Flow) Free cash flow surged **37% to $620.3 million** for the 26-weeks ended June 29, 2024, indicating strong liquidity and decreased capital expenditures - Management believes free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property and equipment[11](index=11&type=chunk) Free Cash Flow (26-Weeks Ended) | Metric (26-Weeks Ended) | June 29, 2024 (in thousands) | July 1, 2023 (in thousands) | YoY Change | | :---------------------- | :--------------------------- | :-------------------------- | :--------- | | Net cash provided by operating activities | $690,626 | $552,912 | 25% | | Less: purchases of property and equipment | $(70,325) | $(99,346) | -29% | | Free Cash Flow | $620,301 | $453,566 | 37% | - In the second quarter of 2024, the company generated operating cash flows of **$255 million** and free cash flow of **$218 million**[37](index=37&type=chunk) [Financial Outlook & Dividends](index=3&type=section&id=Financial%20Outlook%20%26%20Dividends) Garmin updated its 2024 fiscal year guidance, projecting increased revenue and EPS, and announced future quarterly dividend payments [2024 Fiscal Year Guidance](index=3&type=section&id=2024%20Fiscal%20Year%20Guidance) Garmin raised its 2024 guidance, anticipating **$5.95 billion** revenue and **$6.00** pro forma EPS, with a **57.0%** gross margin - We now anticipate revenue of approximately **$5.95 billion** and pro forma EPS of **$6.00** based on gross margin of **57.0%**, operating margin of **21.3%** and a full year effective tax rate of **16.0%**[18](index=18&type=chunk) - The forward-looking financial measures in our 2024 guidance do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments[13](index=13&type=chunk) [Dividend Information](index=3&type=section&id=Dividend%20Information) Shareholders approved a **$3.00 per share** cash dividend for 2024, with future quarterly installments of **$0.75 per share** scheduled - Garmin shareholders, in accordance with Swiss corporate law, approved a cash dividend in the total amount of **$3.00 per share**, payable in four equal installments[39](index=39&type=chunk) Upcoming Quarterly Dividends | Dividend Date | Record Date | $s per share | | :---------------- | :---------------- | :----------- | | December 27, 2024 | December 13, 2024 | $0.75 | | March 28, 2025 | March 14, 2025 | $0.75 | - The company paid a quarterly dividend of approximately **$144 million** and repurchased **$10 million** of its shares within the second quarter[37](index=37&type=chunk) [Other Information](index=3&type=section&id=Other%20Information) This section covers changes in expense presentation, the effective tax rate, forward-looking statements, and investor relations contacts [Change in Operating Expense Presentation](index=5&type=section&id=Change%20in%20Operating%20Expense%20Presentation) Garmin reclassified advertising expense into selling, general, and administrative expenses in Q1 2024, with no impact on operating or net income - In the first quarter of 2024, the Company changed the presentation of operating expense to include advertising expense within selling, general, and administrative expenses on the Company's condensed consolidated statements of income[22](index=22&type=chunk) - This change in presentation had **no effect** on the Company's consolidated operating or net income[22](index=22&type=chunk) [Effective Tax Rate](index=3&type=section&id=Effective%20Tax%20Rate) The Q2 2024 effective tax rate increased to **17.9%** from **8.9%** due to higher Switzerland statutory tax rates responding to global minimum tax requirements - The effective tax rate in the second quarter was **17.9%** compared to **8.9%** in the prior year quarter[46](index=46&type=chunk) - The year-over-year increase in the effective tax rate is primarily due to the increase in the combined federal and cantonal Switzerland statutory tax rate in response to global minimum tax requirements[46](index=46&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially; undue reliance should be avoided - This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as 'anticipates,' 'would,' 'may,' 'expects,' 'estimates,' 'plans,' 'intends,' 'projects,' and other words or phrases with similar meanings[20](index=20&type=chunk) - The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin[20](index=20&type=chunk) - Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law[20](index=20&type=chunk) [Investor & Media Relations](index=4&type=section&id=Investor%20%26%20Media%20Relations) Contact information for investor and media relations is provided, along with details for accessing the earnings call webcast archive - Investor Relations Contact: Teri Seck, 913/397-8200, investor.relations@garmin.com[40](index=40&type=chunk) - Media Relations Contact: Krista Klaus, 913/397-8200, media.relations@garmin.com[40](index=40&type=chunk) - An archive of the live webcast will be available until July 30, 2025 on the Garmin website at www.garmin.com[40](index=40&type=chunk)

Company reports record second quarter revenue and raises full year guidance Highlights for second quarter 2024 include: | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------|---------------------|-------|---------------|---------------|----------------|-------|---------------|---------------| | | | | | | | | | | | (In thousands, except per share information) | 13-Weeks Ended | | | | 26-Weeks Ended | | | | | | June 29, | | July 1, | YoY | June 29, | | July 1, ...

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Here are some of the best human augmentation stocks to consider if you want to jump on board. Via its three business segments — Collins Aerospace, Pratt & Whitney and Raytheon — RTX manufactures a wide range of products, including human augmentation. They are for advanced situational awareness and sensing to enhance human capabilities in various scenarios, from the battlefield to commercial aviation to space exploration. Source: Karolis Kavolelis / Shutterstock.com Microsoft (MSFT) Indeed, it's safe to say ...

Per the terms, Alphabet's YouTube Music app is now available on Garmin IQ Connect smartwatches, allowing users to add playlists and podcasts to their devices. Garmin introduced the Force Kraken trolling motor series, available with a 48-inch shaft length for smaller boat sizes. Its wireless integration with Garmin chartplotters and smartwatches allows for easy route creation and installation of live sonar. Anglers can navigate from anywhere with the included wireless remote, and a compatible Garmin smartwat ...

Additionally, the company could be a top pick for growth investors. GRMN has a Growth Style Score of A, forecasting year-over-year earnings growth of 3.2% for the current fiscal year. One analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.03 to $5.77 per share. GRMN boasts an average earnings surprise of 18.9%. With a solid Zacks Rank and top-tier Growth and VGM Style Scores, GRMN should be on investors' short list. Zacks Premi ...

In the latest trading session, Garmin (GRMN) closed at $168.80, marking a +1.22% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.63%. The investment community will be closely monitoring the performance of Garmin in its forthcoming earnings report. The company is scheduled to release its earnings on July 31, 2024. It is anticipated that the company will report an EPS of $1. ...

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Garmin is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for GRMN's full-year earnings has moved 6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Another Computer and Techn ...

Product Launches and Innovations - Garmin introduced the Panoptix PS22-IF Ice Fishing Bundle, featuring an ECHOMAP UHD2 73sv touchscreen combo and two Panoptix sonar modes for ice fishing, designed to enhance the experience for hardwater anglers [1][7] - The company launched the GPSMAP 16x3 chartplotters, which boast a high-resolution 16-inch touchscreen display with built-in navigation and sonar support, offering superior clarity and sunlight readability [8] - Garmin unveiled the quatix 7 Pro, a next-generation marine smartwatch compatible with Garmin chartplotters, autopilots, and Fusion audio systems, designed for water-based activities [9] - The company expanded its outdoor offerings with the launch of the Approach Z30 laser range finder, aimed at delivering an enhanced experience to golfers [19] Partnerships and Integrations - Garmin partnered with Alphabet's Google to integrate YouTube Music into Garmin IQ Connect smartwatches, allowing users to add playlists and podcasts to their devices [5][13] - The company made advancements in its FltPlan safety management system, updating the Flight Risk Assessment Tool (FRAT) to simplify data input for pilots, strengthening its aviation offerings [10][24] Market and Financial Performance - Garmin's shares have rallied 26 8% year-to-date, outperforming the industry's growth of 17 3% [17] - The company expects 2024 earnings of $5 40 per share, with a consensus estimate of $5 77 per share, indicating a 3 2% rise from the year-ago figure [14] - Garmin anticipates 2024 total revenues of $5 75 billion, with a Zacks Consensus Estimate of $5 90 billion, reflecting year-over-year growth of 12 9% [21] Industry Growth and Opportunities - The global marine electronics market is projected to reach $8 13 billion by 2030, with a CAGR of 5 2% between 2023 and 2030, presenting a solid growth opportunity for Garmin [16] - Garmin is well-positioned to capitalize on the growing marine electronics market through its expanding marine offerings, which are expected to drive its financial performance [3][16][20] Competitive Landscape - Other top-ranked stocks in the technology sector include Apple (AAPL) and Badger Meter (BMI), with Apple shares gaining 20 1% year-to-date and a long-term earnings growth rate of 12 48% [11][22] - Badger Meter shares have gained 27% year-to-date, with a long-term earnings growth rate projected at 15 57% [4]