Garmin’s third-quarter revenue increased 10 percent to $706 million with double-digit growth in four of five reporting segments.
The company’s marine segment posted 12 percent growth, which was boosted by Garmin’s third-quarter acquisition of Fusion Electronics. Gross margin improved to 51 percent, driving 32 percent growth in operating income in the marine segment.
Garmin reported a net loss of $146.8 million, or 76 cents a share, for the quarter that ended Sept. 27, compared with a profit of $187.7 million, or 96 cents a share, a year earlier.
Excluding a $308 million tax expense related to restructuring, the company's pro forma earnings were 76 cents a share.
Overall gross and operating profit margins increased from the prior year’s quarter to 56 percent and 25 percent, respectively. Operating income growth of $24 million, or 16 percent, to $176 million.
“We believe we are well positioned with our current product portfolio while also investing for long-term sustained growth through further innovation and diversification,” Garmin president and CEO Cliff Pemble said in a statement. “Given the strong revenue and margin performance in the third quarter, we are revising our guidance, as we now expect our revenue and pro forma EPS for the full year to be approximately $2.85 billion and $3.10, respectively.”
Pemble said the company should build upon improved performance in the marine segment with its 2015 lineup.
“At the Fort Lauderdale boat show this week, we are showcasing a comprehensive range of all new products, including multifunction displays, chart plotters, radars and autopilots,” Pemble said. “We believe these products position us well against the competition and should provide the foundation for growth in 2015.”