NASDAQ$GRMN

Garmin Ltd. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported strong revenue and operating income growth.

Garmin Ltd. reported an 18% increase in total revenue, reaching $1.102 billion in Q4 2019. Operating income increased by 24% to $277 million, and GAAP EPS was $1.89. The company's fitness, aviation, marine, and outdoor segments collectively grew by 24% over the prior year quarter.

  • Total revenue increased by 18% to $1.102 billion, with fitness, aviation, marine and outdoor collectively increasing 24% over the prior year quarter.
  • Operating margin improved to 25.1% compared to 23.9% in the prior year quarter.
  • GAAP EPS was $1.89 and pro forma EPS was $1.29, representing 26% growth over the prior year quarter.
  • The ForceTM trolling motor and GPSMAP® 86i were awarded the highly competitive DAME design award at METSTRADE

Headline financials

Total Revenue

$1.1B

Previous: $932M+18.2%
EPS (adj)

$1.29

Previous: $1.02+26.5%
Gross Margin

58.0%

Previous: 58.9%-1.5%
Operating Margin

25.1%

Previous: 23.9%+5.0%
Effective Tax Rate

15.5%

No prior period
Capital Expenditures

$26.6M

Previous: $32.9M-19.3%
Free Cash Flow

$208M

Previous: $185M+12.4%
Net Income

$361M

Previous: $190M+89.7%
Operating Income

$277M

Previous: $223M+24.2%
Gross Profit

$639M

Previous: $549M+16.4%
Cash & Equivalents

$1.03B

Previous: $1.2B-14.5%
Total Assets

$6.17B

Previous: $5.38B+14.6%
Stock-Based Comp

$15.8M

Previous: $14.3M+10.8%

Revenue & EPS history

Garmin · Revenue · Quarterly

$1.1B

Q4 2019+18.2%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Garmin · $1.1B total across 5 segments · Q4 2019

  • Fitness
    $373M+34.5%
  • Outdoor
    $295M+15.8%
  • Aviation
    $193M+22.0%
  • Auto OEM
    $126M-14.6%
  • Marine
    $116M+22.3%

Forward guidance

Garmin expects 2020 revenue of approximately $4.0 billion, with growth in fitness, outdoor, and marine segments partially offset by declines in the auto segment. Full year pro forma EPS is expected to be approximately $4.60, based on gross margin of approximately 59.2%, operating margin of approximately 23.5%, and a pro forma effective tax rate of approximately 10.0%.

Tailwinds

  • Fitness ~10%
  • Outdoor ~10%
  • Marine ~10%
  • Aviation ~0%
  • Gross Margin ~59.2%

Headwinds

  • Auto ~(5%)
  • Operating Margin ~23.5%
  • Tax Rate ~10.0%
  • EPS ~$4.60

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 Q4 2019

Historical avgQ4 2019

+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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