Garmin International announced earnings for its third quarter, ending Sept. 24.
Consolidated revenue of $1.14 billion for the quarter, a 4 percent decrease, was negatively impacted by approximately $70 million due to year-over-year strengthening of the U.S. dollar.
Gross margin expanded to 58.8 percent, and operating margin was 21 percent. Operating income was $239 million, a 15 percent decrease compared with the prior year quarter.
Marine segment revenue decreased 5 percent in the third quarter primarily due to the return of more typical seasonality trends. Gross and operating margins were 56 percent and 23 percent respectively, resulting $45 million of operating income.
“Revenue was negatively impacted by the strengthening of the U.S. dollar,” president and CEO Cliff Premble said in a statement. “Despite this significant headwind, gross margin expanded and operating margin remained solid. Looking forward, we are lowering our revenue outlook for the remainder of the year, consistent with the trends we are experiencing, while also raising our EPS guidance on an improving margin outlook.”
Adjusting its full-year guidance, Garmin anticipates revenue of approximately $4.85 billion, gross margin of 57.5 percent and operating margin of 20.7 percent.
For the eighth consecutive year, Garmin was named Manufacturer of the Year by the National Marine Electronics Association and received five product excellence awards.