GRMN Earnings Prediction
The chart below shows how GRMN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GRMN sees a -4.89% change in stock price 10 days leading up to the earnings, and a +2.11% change 10 days following the report. On the earnings day itself, the stock moves by +5.11%. This data can give you a slight idea of what to expect for the next quarter's release.
GRMN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.59B
24.15%
5.27%
Gross Margin
60.00%
5.21%
4.77%
Operating Margin
27.58%
30.34%
21.50%
Net Margin
25.16%
24.93%
26.12%
EPS
2.07
54.48%
32.69%
No Data Available
GRMN Earnings Analysis
Garmin Ltd Corporation (GRMN.N) Earnings Conference Call
Positive
Record Revenue Achievement: Consolidated revenue increased 24% to $1.59 billion, achieving record revenue in all five business segments.
Gross Margin Expansion: Gross margin expanded 300 basis points to 60%.
Operating Income Surge: Operating income increased 62% year-over-year, with operating margin expanding 640 basis points to 27.6%.
Earnings Per Share Increase: Reported pro forma EPS of $1.99, up 41% year-over-year.
Fitness Segment Revenue Surge: Revenue in the Fitness segment increased 31% to $464 million, with all categories contributing to growth.
Negative
Revenue Growth vs. Expenses: Consolidated revenue increased 24% to $1.59 billion, but this growth was not sufficient to offset the significant increase in operating expenses, which rose by $56 million or 12%.
Operating Income Surge: Operating income was reported at $437 million, reflecting a 62% increase year-over-year, yet this was overshadowed by the rising costs that impacted overall profitability.
Rising Operating Expenses: Operating expenses as a percentage of sales were 32.4%, indicating a 350 basis point increase, which suggests deteriorating cost management despite revenue growth.
Inventory Concerns and Cash Flow: Inventory balance increased year-over-year sequentially to approximately $1.5 billion, raising concerns about potential overstock and its impact on cash flow.
Tax Rate Increase: The effective tax rate for the quarter was 17.9%, compared to a prior year effective tax rate of 7.2%, indicating a significant increase in tax liabilities that could affect net income.
GRMN FAQs
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GRMN Earning Call Sentiment
Garmin Ltd. (GRMN) Q3 2024 Earnings Call Transcript
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GRMN.N
0.32%Positive
The earnings call summary reflects strong financial performance, with increased revenue and margins across segments, and improved guidance. The Q&A section reinforces confidence, with management addressing key growth drivers and market strategies. Despite some uncertainties in auto OEM and vague responses, the overall sentiment is positive, supported by optimistic guidance and strong segment growth. Additionally, the company has a solid liquidity position and is expanding its market share, particularly in marine and wearables.