NASDAQ$GRMN

Garmin Ltd. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported record second quarter revenue and operating income.

Garmin Ltd. announced record second quarter revenue and operating income, with total revenue of $1.33 billion, a 53% increase over the prior year quarter, and operating income of $371 million, a 97% increase over the prior year quarter. Strong demand for active lifestyle products continued, and the company experienced solid recovery within its aviation and auto segments.

  • Total revenue of $1.33 billion, a 53% increase over the prior year quarter with double-digit growth in all segments
  • Gross margin of 58.8% compared to 59.3% in the prior year quarter
  • Operating margin improved to 28.0% compared to 21.7% in the prior year quarter
  • GAAP EPS was $1.64 and pro forma EPS was $1.68, representing 85% growth in pro forma EPS over the prior year quarter

Headline financials

Total Revenue

$1.33B

Previous: $870M+52.5%
EPS (adj)

$1.68

Previous: $0.91+84.6%
Gross Margin

58.8%

Previous: 59.3%-0.8%
Operating Margin

28.0%

Previous: 21.7%+29.0%
Effective Tax Rate

14.8%

Previous: 6.8%+117.6%
Capital Expenditures

-$147M

Previous: -$98.3M-49.1%
Free Cash Flow

$170M

Previous: $85.9M+98.4%
Net Income

$317M

Previous: $184M+72.1%
Operating Income

$371M

Previous: $188M+97.0%
Gross Profit

$781M

Previous: $515M+51.5%
Cash & Equivalents

$1.64B

Previous: $1.35B+21.0%
Total Assets

$7.4B

Previous: $6.22B+19.0%
Stock-Based Comp

$22.6M

Previous: $15.9M+41.9%

Revenue & EPS history

Garmin · Revenue · Quarterly

$1.33B

Q2 2021+52.5%vs Q2 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Garmin · $1.33B total across 5 segments · Q2 2021

  • Fitness
    $413M+40.2%
  • Outdoor
    $323M+56.8%
  • Marine
    $262M+65.9%
  • Aviation
    $181M+43.4%
  • Auto OEM
    $148M+73.6%

Forward guidance

Based on the strong performance in the first half of 2021, the company is updating its full year guidance. They now anticipate revenue of approximately $4.9 billion with projected growth in all segments and anticipate full year pro forma EPS will be approximately $5.50.

Tailwinds

  • Anticipate revenue of approximately $4.9 billion
  • Projected growth in all segments
  • Gross margin of approximately 58.5%
  • Operating margin of approximately 23.8%
  • Full year pro forma effective tax rate of approximately 11.5%

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 Q2 2021

Historical avgQ2 2021

+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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