Garmin Ltd. (GRMN) Tops Q4 EPS by 34c, Revenues Beat; Offers FY21 EPS/Revenue Guidance Above Consensus

February 17, 2021 7:03 AM EST

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Garmin Ltd. (NASDAQ: GRMN) reported Q4 EPS of $1.73, $0.34 better than the analyst estimate of $1.39. Revenue for the quarter came in at $1.35 billion versus the consensus estimate of $1.18 billion.

Highlights for fourth quarter 2020 include:

  • 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
  • Operating income of $371 million, increasing 34% over the prior year quarter
  • GAAP EPS was $1.73 and pro forma EPS(1) was $1.73, representing 34% growth in pro forma EPS over the prior year quarter
  • Added pregnancy tracking to Garmin Connect, providing innovative new tools to women who want to remain fit and healthy during pregnancy
  • Expanded our reach in the recreational diving market with the launch of the new Descent® Mk2i, our first dive watch featuring air integration in combination with the T1 tank transmitter
  • Garmin Autoland was named one of 2020’s greatest innovations by Popular Science and won a Top Flight Award from Aviation International News
  • Recently announced the acquisition of substantially all the assets of GEOS Worldwide Limited, a leading provider of emergency monitoring and response services for customers around the globe

Executive Overview from Cliff Pemble, President and Chief Executive Officer:

“In a year filled with unimaginable challenges, Garmin delivered record revenue and profits,” said Cliff Pemble, President and CEO of Garmin. “Strong demand for active lifestyle products fueled our growth, and we expect these trends to continue into 2021. I am very proud of what we have accomplished in 2020 and look forward to the opportunities and challenges of the new year.”

GUIDANCE:

Garmin Ltd. sees FY2021 EPS of $5.15, versus the consensus of $5.11. Garmin Ltd. sees FY2021 revenue of $4.6 billion, versus the consensus of $4.36 billion.

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%.

For earnings history and earnings-related data on Garmin Ltd. (GRMN) click here.



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