Garmin Ltd GRMN stock climbed Wednesday after it reported its fourth-quarter results.
The company clocked revenue growth of 13% year-on-year to $1.48 billion, beating the consensus of $1.42 billion.
The GPS navigation and wearable technology company’s proforma EPS of $1.72 beat the consensus of $1.40.
Segments: Revenue from Fitness grew by 22% Y/Y to $412.1 million with growth across all categories led by strong demand for wearables.
Outdoor revenue improved by 8% Y/Y to $486.4 million, with growth across multiple categories led by adventure watches. Aviation revenue declined by 4% Y/Y to $217.1 million as growth in OEM categories was more than offset by decreases in aftermarket categories.
Marine revenue increased by 14% Y/Y to $239.9 million due to contributions from the acquisition of JL Audio. Auto OEM grew 54% Y/Y to $127 million, primarily due to increased shipments of domain controllers.
The gross margin improved by 130 bps to 58.3%. The operating margin climbed to 23.0% from 20.5% a year ago.
Garmin generated $417 million in free cash flow. It held $3.1 billion in cash and equivalents.
Dividend: The Board intends to recommend a cash dividend of $3.00 per share, payable in four equal installments.
On February 16, 2024, the Board authorized the company to repurchase up to $300 million of the company’s shares through December 26, 2026.
Outlook: Garmin expects FY24 revenue of $5.75 billion, above the consensus of $5.56 billion.
Garmin projected proforma EPS of $5.40, below the consensus of $5.61. The stock gained 31% last year.
Price Action: GRMN shares traded higher by 5% at $128.89 premarket on the last check Wednesday.
Photo via Wikimedia Commons
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