Garmin's Q2 2024 revenue increased by 14% across all segments, raising full-year guidance
From Investing.com: 2024-07-31 19:11:37
Garmin Limited (GRMN) reported a 14% increase in consolidated revenue, reaching $1.51 billion in Q2 2024. The fitness segment led with a 28% revenue surge, while the marine segment saw a 26% increase and the aviation segment remained stable. Full-year revenue guidance was raised to approximately $5.95 billion, with pro forma EPS of $6.
The strong financial performance in Q2 2024 reflects Garmin’s double-digit revenue growth across all business segments, with a focus on innovation and market share gains. The company’s gross margin was reported at 57.3%, operating margin at 22.7%, and operating income at $342 million, up 20% year-over-year. Pro forma EPS reached $1.58, up 9% from the prior year.
Garmin’s global employment surpassed 20,000 associates, and the company was recognized as a top employer by Forbes and U.S. News and World Report. The fitness segment recorded notable growth, with the launch of new products like the Edge 1050 premium cycling computer. The outdoor segment saw a slight decrease due to lower revenue from adventure watches, but introduced new products like the Approach Z30 smart laser rangefinder.
The company’s bullish highlights include the marine segment’s strong performance driven by innovative product lines, stability in the fitness market with a focus on gaining market share, and consistent growth in monthly active users on the Garmin Connect app. However, misses include a slight decrease in revenue in the outdoor segment and a lack of specific figures on the impact of promotional activities discussed by executives.
Garmin’s increased full-year revenue guidance and optimistic outlook for the fitness segment, along with segment mix and R&D investments influencing gross margins in the second half of the year, position the company favorably in the consumer electronics market. With strategic focus on growth and customer loyalty, Garmin remains well-positioned for future success.
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