The following is a summary of the Garmin Ltd (GRMN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Garmin reported Q1 consolidated revenue growth of 20%, resulting in a record $1.38 billion, with four segments delivering double-digit growth.
Gross and operating margins expanded year-over-year to 58.1% and 21.6%, respectively, with a record Q1 operating income of $298 million, up 51% year-over-year.
The company registered a pro forma EPS of $1.42, marking an increase of 39% compared to last year.
The Fitness unit achieved strong performance with revenue of $343 million, an increase of 40%, which improved gross and operating margins to 57% and 20%, respectively.
Other segment revenues: Outdoor increased 11% to $366 million; Aviation revenue rose by 2% to $217 million; Marine revenue increased by 17% to hit $327 million; Auto OEM revenue recorded a significant increase of 58% to $129 million.
Business Progress:
Noteworthy product releases include the Forerunner 165 in their Fitness segment, which was well received by the market.
The Aviation unit unveiled an avionics modernization program to improve safety and reduce pilot workload.
Consent was given on significant business expansions like the design and manufacture of digital instrument clusters for 2-wheel vehicles and full infotainment systems for an industrial truck maker.
The company ended the quarter with cash and marketable securities worth approximately $3.3 billion and generated a free cash flow of $402 million, reflecting a healthy financial position.
More details: Garmin IR
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