NASDAQ$GRMN

Garmin Ltd. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Garmin's revenue decreased due to underperformance in the fitness segment, impacted by market normalization and a strong U.S. dollar.

Garmin reported a decrease in revenue driven primarily by underperformance in the fitness segment. The company faces headwinds including the strengthening U.S. Dollar, high inflation, and rising interest rates. However, they believe their innovative products and diversification strategy will help them remain strong.

  • Consolidated revenue of $1.24 billion, a 6% decrease compared to the prior year quarter.
  • Gross and operating margins were 58.7% and 23.6%, respectively.
  • Operating income of $293 million, a 21% decrease compared to the prior year quarter.
  • GAAP EPS was $1.33 and pro forma EPS was $1.44.

Headline financials

Total Revenue

$1.24B

Previous: $1.33B-6.5%
EPS (adj)

$1.44

Previous: $1.68-14.3%
Gross Margin

58.7%

Previous: 58.8%-0.2%
Operating Margin

23.6%

Previous: 28.0%-15.7%
Effective Tax Rate

7.6%

Previous: 14.8%-48.6%
Capital Expenditures

-$135M

Previous: -$147M+8.0%
Free Cash Flow

$123M

Previous: $170M-27.8%
Net Income

$258M

Previous: $317M-18.7%
Operating Income

$293M

Previous: $371M-21.1%
Gross Profit

$729M

Previous: $781M-6.7%
Cash & Equivalents

$1.09B

Previous: $1.64B-33.7%
Total Assets

$7.81B

Previous: $7.4B+5.6%
Stock-Based Comp

$15M

Previous: $22.6M-33.4%

Revenue & EPS history

Garmin · Revenue · Quarterly

$1.24B

Q2 2022-6.5%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Garmin · $1.24B total across 5 segments · Q2 2022

  • Outdoor
    $382M+18.1%
  • Fitness
    $272M-34.1%
  • Marine
    $243M-7.3%
  • Aviation
    $205M+13.2%
  • Auto OEM
    $139M-5.7%

Forward guidance

Based on our performance in the first half of 2022, we are adjusting our full year guidance. We now anticipate revenue of approximately $5.0 billion and pro forma EPS of $4.90 based on gross margin of 56.7%, operating margin of 20.0% and a full year effective tax rate of 8.5%

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 2022

Historical avgQ2 2022

+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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