Garmin reports 1Q results

Garmin said today that it saw revenue grow 7 percent in the first quarter to $624 million.
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Garmin said today that it saw revenue grow 7 percent in the first quarter to $624 million as outdoor, fitness, aviation and marine collectively grew 17 percent from the year-earlier quarter and contributed 69 percent of total revenue.

The company reported a profit for the quarter that ended March 24 of $88.1 million, or 46 cents a diluted share, up 32 percent from $66.8 million, or 35 cents a share, a year earlier. Pro forma per-share earnings fell to 49 cents from 55 cents.

MarketWatch said analysts that Thomson Reuters polled had expected earnings of 42 cents a share and flat revenue.

Gross and operating margins for the current year’s quarter were 54.5 percent and 16.6 percent, respectively.

The marine segment posted revenue growth of 29 percent on the strength of the company’s chart plotter and fishfinder product lines.

Gross margins in the marine segment declined year-over-year to 53 percent, but the segment’s operating margin increased to 12 percent. Garmin leveraged operating investments, resulting in strong operating income growth of 125 percent, the company said.

Its recently launched GPSMap 8400/8600 are the largest plotters the company has produced at 17-, 22-, and 24-inch displays, and they have a resolution of 1920-by-1280, which it says is the highest screen resolution available on the market.

The company completed its acquisition of DeLorme, maker of the inReach series of two-way satellite communication devices for consumers, adding device and recurring service revenue to the outdoor segment.

“We started out 2016 strong with total revenue growth of 7 percent, led by robust double-digit growth in our marine and outdoor segments, and high single-digit growth in our fitness and aviation segments,” Garmin president and CEO Cliff Pemble said in a statement. “With the majority of the year still ahead of us, we recognize that there are many challenges and uncertainties yet to be encountered. We will continue to focus on innovation and execution to deliver compelling products to the markets we serve.”

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