Garmin reported total revenue of $810 million in the third quarter, up 8 percent over the prior year. The marine, aviation, fitness and outdoor segments collectively grew 16 percent over the prior year quarter, accounting for 80 percent of total revenue.
“During the third quarter, we continued our strong performance, achieving double-digit revenue growth in four of our five segments and double-digit growth of consolidated operating income,” Garmin president and CEO Cliff Pemble said in a statement. “We are well-positioned for the remainder of 2018, with a solid lineup of products, and are raising our EPS guidance to reflect our strong performance.”
The marine segment posted a robust revenue increase of 28 percent, driven by organic growth across multiple product categories and recent acquisitions. Gross and operating margins in the marine segment were 59 percent and 14 percent, respectively.
The National Marine Electronics Association for the fourth consecutive year recognized Garmin as Manufacturer of the Year, claiming six awards, including the NMEA Technology Award.
Garmin will focus on gaining market share in the inland fishing category moving forward.
Gross margins across the company were 59.4 percent, versus 58.2 percent in the third quarter of 2017.
“We have increased our 2018 guidance to reflect the strong third quarter performance,” said the company. “We anticipate our fourth quarter revenue to be relatively flat year-over-year with total full-year revenue of approximately $3.3 billion and a gross margin of 58.5 percent. We are raising our full-year operating margin to approximately 22 percent and lowering our full year pro forma effective tax rate to about 16 percent resulting in a pro forma EPS of approximately $3.45.”