Garmin (GRMN) Soars 8.6% After Reporting Record Revenue

By Bobby Samwell • Wednesday, February 21 15:54 • Permanent Link

Garmin Ltd. (NYSE: GRMN) has reported its financial results for the fourth quarter and fiscal year 2023, showing record full-year revenue and proposing a dividend increase. The company also announced a share repurchase program.

In the fourth quarter of 2023, Garmin achieved consolidated revenue of $1.48 billion, a 13% increase compared to the same period in the prior year. The gross margin expanded to 58.3% from 57.0%, while operating margin was 23.0% compared to 20.5% in the prior year quarter. The company's operating income was $340 million, representing a 27% increase compared to the same period in the prior year. The GAAP EPS was $2.82 and pro forma EPS was $1.72, reflecting a 27% growth in pro forma EPS over the prior year quarter.

For the full fiscal year 2023, Garmin reported record consolidated revenue of $5.23 billion, an 8% increase compared to the prior year. The aviation, marine, and auto OEM segments each posted record full-year revenue. The gross margin for the year was 57.5% compared to 57.7% in the prior year, with an operating margin of 20.9% compared to 21.1% in the prior year.

Garmin's full-year 2024 financial guidance projects revenue of approximately $5.75 billion, representing an approximate 10% increase over 2023. The full-year pro forma EPS is expected to be approximately $5.40 based upon a gross margin of approximately 56.5%, an operating margin of approximately 20.0%, and a pro forma effective tax rate of approximately 15.5%.

Cliff Pemble, President, and CEO of Garmin Ltd., expressed his satisfaction with the company's 2023 financial performance and its strong momentum entering 2024. He stated, "We are very pleased with our 2023 financial performance resulting in record full-year consolidated revenue and record full-year revenue in three of our five segments. We are entering 2024 with strong momentum from our robust product lineup and have many product launches planned during the year. I am very proud of what we accomplished in 2023 and look forward to all that 2024 will bring."

The company's shares have moved 8.6% and are now trading at a price of $133.33.

The company's full 8-K submission is available here.

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