Garmin Clocks 4% Revenue Decline In Q3; Slashes FY22 Revenue Outlook Below Consensus

  • Garmin Ltd GRMN reported a third-quarter FY22 revenue decline of 4% year-on-year to $1.14 billion, missing the consensus of $1.20 billion.
  • Revenue from Fitness declined 18% Y/Y to $279.88 million, Outdoor rose 5% Y/Y to $340.39 million, Aviation improved 4% Y/Y to $188.04 million, Marine declined 5% Y/Y to $196.51 million, and Auto sales fell 2% Y/Y to $135.62 million.
  • Margins: The gross margin expanded 40 bps to 58.8%. The operating margin contracted 270 bps to 21% as expenses increased 4.3% Y/Y.
  • Proforma EPS of $1.24 beat the consensus of $1.14.
  • Garmin generated $104 million in free cash flow. It held $1.46 billion in cash and equivalents.
  • "Revenue was negatively impacted by the strengthening of the U.S. Dollar," CEO Cliff Pemble said.
  • Dividend: The Board established December 31, 2022, as the payment date for the next dividend installment of $0.73 per share, with a record date of December 15, 2022.
  • Outlook: Garmin cut its FY22 revenue outlook from $5 billion to $4.85 billion, below the consensus of $4.99 billion.
  • Garmin raised the proforma EPS from $4.90 to $4.95, above the consensus of $4.90.
  • Price Action: GRMN shares traded higher by 1.43% at $86.10 on the last check Wednesday.
  • Photo Via Company
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceDividendsTechBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!