Garmin(GRMN) - 2024 Q3 - Quarterly Results

Revenue and Profit Growth - Consolidated revenue for Q3 2024 reached $1.59 billion, a 24$437 million, a 62% increase YoY, driven by strong performance across segments[1] - Net sales for the 13-weeks ended September 28, 2024, increased to $1,586,022 thousand, up 24.1$1,277,531 thousand in the same period last year[15] - Gross profit for the 13-weeks ended September 28, 2024, rose to $951,599 thousand, a 30.6$728,569 thousand in the prior year period[15] - Net income for the 13-weeks ended September 28, 2024, grew to $399,111 thousand, up 55.2$257,243 thousand in the same period last year[15] - Net sales for the 13-weeks ended September 28, 2024, totaled $1,586,022 thousand, a 24$1,277,531 thousand in the same period in 2023[19] - Gross profit for the 13-weeks ended September 28, 2024, was $951,599 thousand, up from$728,569 thousand in the same period in 2023[18] - Operating income for the 13-weeks ended September 28, 2024, reached $437,475 thousand, compared to$270,369 thousand in the same period in 2023[18] - GAAP net income for the 13-weeks ended September 28, 2024, was $399,111 thousand, compared to$257,243 thousand in the same period in 2023[25] - Net sales for the 39-weeks ended September 28, 2024, totaled $4,474,342 thousand, a 19$3,745,751 thousand in the same period in 2023[19] - Operating income for the 39-weeks ended September 28, 2024, was $1,077,913 thousand, compared to$751,706 thousand in the same period in 2023[18] Segment Performance - Fitness segment revenue grew 31% YoY to $463.9 million, with gross and operating margins of 61$526.6 million, driven by growth in adventure watches, with gross and operating margins of 68% and 40%, respectively[5] - Marine segment revenue rose 22% YoY to $222.2 million, primarily due to the acquisition of JL Audio, with gross and operating margins of 55$168.7 million, driven by growth in domain controllers, with a gross margin of 20%[8] Financial Guidance and Cash Flow - Garmin raised its full-year 2024 revenue guidance to $6.12 billion, with pro forma EPS expected to be$6.85, based on a gross margin of 58.5% and operating margin of 24.0%[11] - The company generated $258 million in operating cash flow and$219 million in free cash flow during Q3 2024, ending the quarter with $3.5 billion in cash and marketable securities[10] - Cash and cash equivalents as of September 28, 2024, stood at$2,009,361 thousand, an 18.6% increase from $1,693,452 thousand at the end of 2023[16] - Total assets as of September 28, 2024, increased to$9,347,732 thousand, up 8.6% from $8,603,569 thousand at the end of 2023[16] - Net cash provided by operating activities for the 39-weeks ended September 28, 2024, was$948,581 thousand, a 4.2% increase from $910,324 thousand in the same period last year[17] - Free cash flow for the 13-weeks ended September 28, 2024, was$219,411 thousand, down from $311,882 thousand in the same period in 2023[28] Strategic Initiatives and Product Launches - Garmin announced the strategic acquisition of Lumishore, a leader in marine LED lighting, to enhance its marine product offerings[1] - The company launched the fēnix 8 series and Enduro 3, expanding its outdoor adventure watch lineup, and introduced the inReach Messenger Plus, a satellite communicator with advanced features[5] Regional Sales Performance - Net sales in the Americas region for the 13-weeks ended September 28, 2024, were$724,572 thousand, a 15% YoY increase from $628,157 thousand in 2023[19] - EMEA region net sales for the 13-weeks ended September 28, 2024, were$612,658 thousand, a 40% YoY increase from $439,123 thousand in 2023[19] Expenses and Dividends - Research and development expenses for the 13-weeks ended September 28, 2024, increased to$249,162 thousand, up 12.5% from $221,572 thousand in the same period last year[15] - Total operating expenses for the 13-weeks ended September 28, 2024, rose to$514,124 thousand, a 12.2% increase from $458,200 thousand in the prior year period[15] - Dividends paid during the 39-weeks ended September 28, 2024, totaled$428,373 thousand, a 2.2% increase from $419,166 thousand in the prior year period[17] - Net cash used in investing activities for the 39-weeks ended September 28, 2024, was$190,765 thousand, a 28.7% decrease from $267,692 thousand in the same period last year[17] Tax and Other Financial Metrics - The effective tax rate for the 13-weeks ended September 28, 2024, was 17.9%, compared to 8.0% in the same period in 2023[22]