NASDAQ$GRMN

Garmin Ltd. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Garmin reported record results led by robust growth in the marine, fitness and outdoor segments and proposed dividend increase.

Garmin Ltd. announced record fourth quarter and fiscal year results, with total revenue of $1.35 billion, a 23% increase over the prior year quarter. Strong demand for active lifestyle products fueled growth, and the company expects these trends to continue into 2021.

  • Total revenue of $1.35 billion, a 23% increase over the prior year quarter, led by robust growth in the marine, fitness and outdoor segments
  • Gross margin of 58.5% compared to 58.0% in the prior year quarter
  • Operating margin improved to 27.5% compared to 25.1% in the prior year quarter
  • GAAP EPS was $1.73 and pro forma EPS was $1.73, representing 34% growth in pro forma EPS over the prior year quarter

Headline financials

Total Revenue

$1.35B

Previous: $1.1B+22.6%
EPS (adj)

$1.73

Previous: $1.29+34.1%
Gross Margin

58.5%

Previous: 58.0%+0.9%
Operating Margin

27.5%

Previous: 25.1%+9.6%
Effective Tax Rate

14.8%

Previous: 15.5%-4.5%
Capital Expenditures

$48.3M

Previous: $26.6M+81.9%
Free Cash Flow

$387M

Previous: $208M+86.5%
Net Income

$334M

Previous: $361M-7.6%
Operating Income

$371M

Previous: $277M+34.3%
Gross Profit

$791M

Previous: $639M+23.7%
Cash & Equivalents

$1.46B

Previous: $1.03B+41.9%
Total Assets

$7.03B

Previous: $6.17B+14.0%
Stock-Based Comp

$27.4M

Previous: $15.8M+72.7%

Revenue & EPS history

Garmin · Revenue · Quarterly

$1.35B

Q4 2020+22.6%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Garmin · $1.35B total across 5 segments · Q4 2020

  • Fitness
    $471M+26.4%
  • Outdoor
    $412M+39.7%
  • Marine
    $172M+48.2%
  • Aviation
    $157M-18.7%
  • Auto OEM
    $140M+11.2%

Forward guidance

We expect full year 2021 revenue of approximately $4.6 billion with growth in all segments. We expect our full year pro forma EPS to be approximately $5.15 based upon gross margin of approximately 59.2%, operating margin of approximately 23.5% and a full year pro forma effective tax rate of approximately 10.5%.

Tailwinds

  • Expect full year 2021 revenue of approximately $4.6 billion
  • Expect growth in all segments
  • Expect full year pro forma EPS to be approximately $5.15
  • Expect gross margin of approximately 59.2%
  • Expect operating margin of approximately 23.5%

Headwinds

  • Pro forma effective tax rate of approximately 10.5%
  • Potential future net effect of foreign currency exchange gains and losses
  • Certain discrete tax items
  • Any other impacts that may be identified as pro forma adjustments in calculating the non-GAAP measures
  • The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses

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 2020

Historical avgQ4 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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