Garmin reports strong revenue growth, but lower margins causes stock to slide

From Yahoo Finance: 2025-04-30 11:44:00

Garmin Ltd (NYSE:GRMN) stock fell after reporting first-quarter 2025 results. Revenue grew by 11% year-on-year to $1.54 billion, beating estimates. Adjusted EPS of $1.61 missed expectations. Fitness revenue rose by 12%, outdoor revenue by 20%, aviation revenue by 3%, and auto OEM revenue by 31%. Marine revenue decreased by 2%.

The gross margin decreased to 57.6%, and the operating margin was 21.7%. Garmin generated $380.73 million in free cash flow for the quarter and held $3.9 billion in cash and equivalents. The company reiterated its revenue outlook of $6.85 billion for FY25, up from prior guidance.

Despite the positive revenue outlook, GRMN stock is down 7.39% at $189.02. Garmin highlighted economic assumptions in its forward outlook, including foreign currency exchange rates and tariffs. The company cautioned that these factors could rapidly change favorably or unfavorably.

Read more: Garmin Lifts Sales Outlook, But Tightening Margin Sends Stock Sliding