Garmin Ltd. today reported second-quarter revenue of $812 million, growing 5 percent from the prior year, with fitness, outdoor, marine and aviation collectively growing 20 percent from the year-earlier quarter and contributing 70 percent of total revenue.
Gross margin expanded to 57 percent for the quarter that ended June 25, compared with 54.2 percent in the prior year’s quarter, and the operating margin expanded to 24.7 percent, compared with 21.5 percent last year.
The company reported net earnings for the quarter of $161.1 million, or 85 cents a diluted share, compared with $137.8 million, or 72 cents a share, a year earlier.
The marine segment posted second-quarter revenue growth of 8 percent, driven by the company’s lineup of chart plotters, fishfinders and entertainment systems.
The company attributed growth to market share gains in the inland fishing category. Gross margins increased year over year to 58 percent, and the operating margin increased to 26 percent, resulting in operating income growth of 19 percent.
The company is raising its expectations for the year to revenue of $2.9 billion from $2.82 billion, and earnings per share of $2.50, up from $2.25. It also raised expectations on operating income, operating margins and gross margins.
“We achieved strong results in the second quarter of 2016, with each business segment delivering solid performance,” Garmin Ltd. president and CEO Cliff Pemble said in a statement. “Fitness and outdoor achieved impressive revenue and profit growth, driven by our strengthening position in the wearables market.”
“Aviation and marine also delivered revenue and profit growth while auto remains a solid base of profit contributions to the overall business,” Pemble said. “I am pleased with our performance in the first half of 2016, which gives us confidence to raise our guidance for the full year.”