NASDAQ$GRMN

Garmin Ltd. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Garmin reported strong revenue and operating income growth for Q1 2020 but withdrew fiscal 2020 guidance due to COVID-19 economic uncertainty.

Garmin Ltd. announced strong results for the first quarter ended March 28, 2020, with a 12% increase in total revenue to $856 million and a 17% increase in operating income to $177 million. GAAP EPS was $0.84 and pro forma EPS was $0.91, representing 25% growth over the prior year quarter. The company withdrew its fiscal 2020 guidance due to economic uncertainty caused by the COVID-19 pandemic.

  • Total revenue increased by 12% to $856 million, with fitness, marine, outdoor, and aviation segments collectively growing by 17%.
  • Operating income grew by 17% to $177 million.
  • GAAP EPS was $0.84, and pro forma EPS was $0.91, a 25% increase year-over-year.
  • The company withdrew its fiscal 2020 guidance due to economic uncertainty caused by the COVID-19 pandemic.

Headline financials

Total Revenue

$856M

Previous: $766M+11.8%
EPS (adj)

$0.91

Previous: $0.73+24.7%
Gross Margin

59.2%

Previous: 59.0%+0.3%
Operating Margin

20.7%

Previous: 19.8%+4.5%
Effective Tax Rate

9.3%

Previous: 15.7%-40.8%
Capital Expenditures

-$41.4M

Previous: -$30.1M-37.4%
Free Cash Flow

$120M

Previous: $110M+8.8%
Net Income

$161M

Previous: $140M+15.0%
Operating Income

$177M

Previous: $151M+17.2%
Gross Profit

$507M

Previous: $452M+12.2%
Cash & Equivalents

$1.05B

Previous: $1.12B-6.0%
Total Assets

$6.05B

Previous: $5.28B+14.7%
Stock-Based Comp

$15.6M

Previous: $15.1M+2.8%

Revenue & EPS history

Garmin · Revenue · Quarterly

$856M

Q1 2020+11.8%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Garmin · $856M total across 5 segments · Q1 2020

  • Fitness
    $224M+24.0%
  • Aviation
    $189M+10.4%
  • Outdoor
    $175M+13.7%
  • Marine
    $163M+21.7%
  • Auto OEM
    $106M-16.7%

Forward guidance

Garmin withdrew its fiscal 2020 guidance due to the rapid and unpredictable economic changes caused by the COVID-19 pandemic. Management expects to provide guidance once the trajectory of the economy and consumer behaviors are better understood.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+3.2%

Avg return

30 days after

51%

37 / 73 earnings

Positive

+19.3%

Q3 2024

Best reaction

-11.5%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%-3.7%-5.6%
Q4 2025+9.7%+13.9%+7.1%
Q3 2025-11.5%-15.1%-21.3%
Q2 2025-7.4%-5.8%+1.1%
Q1 2025-8.4%-6.8%-0.6%
Q4 2024+12.6%+3.7%-2.1%
Q3 2024+19.3%+20.4%+27.9%
Q2 2024-4.6%-9.9%+2.2%
Q1 2024+14.4%+16.2%+13.4%
Q4 2023+9.1%+10.2%+20.0%
Q3 2023+11.6%+13.4%+20.6%
Q2 2023-0.0%-0.2%-0.3%
Q1 2023+4.5%+6.6%+9.6%
Q4 2022+7.4%+4.7%+2.1%
Q3 2022+1.2%+3.7%+7.3%
Q2 2022-4.4%-4.1%-10.8%
Q1 2022+0.6%+1.6%-4.1%
Q4 2021-5.5%-4.5%-0.2%
Q3 2021-9.5%-11.8%-13.0%
Q2 2021+3.8%+3.8%+15.7%
Q1 2021-1.7%-2.3%+0.8%
Q4 2020-3.7%-3.6%-5.1%
Q3 2020+2.1%+11.4%+18.7%
Q2 2020+0.7%+0.6%+4.4%
Q1 2020-2.7%-4.4%+8.1%
Q4 2019+2.8%-1.8%-32.0%
Q3 2019+6.6%+7.2%+11.1%
Q2 2019+0.2%-1.6%+6.5%
Q1 2019-8.1%-7.5%-10.8%
Q4 2018+16.1%+17.7%+17.8%
Q3 2018+6.9%+2.9%+5.7%
Q2 2018+3.3%+3.4%+9.1%
Q1 2018+2.3%+0.6%+4.1%
Q4 2017-6.9%-6.5%-11.1%
Q3 2017+4.0%+4.8%+8.2%
Q2 2017+3.7%+4.2%+3.7%
Q1 2017+0.4%+1.4%+3.3%
Q4 2016+3.7%+4.3%+1.3%
Q3 2016-3.4%-2.3%+6.6%
Q2 2016+15.4%+20.2%+8.2%
Q1 2016+2.3%
Q4 2015+15.7%
Q3 2015+1.8%
Q2 2015-1.4%
Q1 2015-4.8%
Q4 2014-10.7%
Q3 2014-5.3%
Q2 2014-4.4%
Q1 2014+3.1%
Q4 2013+9.3%
Q3 2013-2.7%
Q2 2013+7.2%
Q1 2013-1.6%
Q4 2012-10.8%
Q3 2012-2.3%
Q2 2012+4.5%
Q1 2012-3.5%
Q4 2011-1.4%
Q3 2011+4.9%
Q2 2011+0.5%
Q1 2011-0.7%
Q4 2010+1.0%
Q3 2010-3.5%
Q2 2010+2.2%
Q1 2009-10.6%
Q1 2010-2.0%
Q4 2009-7.3%
Q4 2007-7.3%
Q3 2008-10.4%
Q3 2009-10.4%
Q4 2008-3.1%
Q2 2008-3.1%
Q2 2009-3.1%

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