Garmin said it grew revenue 6 percent in the third quarter to $722 million with fitness, outdoor, marine and aviation collectively growing 24 percent from the prior year’s quarter and contributing 70 percent of total revenue.
The company raised its expectations for the full year, and is now projecting earnings of $2.65 a share on revenue of $2.95 billion — up from per-share earnings of $2.50 on $2.90 billion in revenue.
Gross margins for the quarter that ended Sept. 24 expanded to 56.2 percent, compared with 53.3 percent in the prior-year quarter, and the company said its operating margin expanded to 22.1 percent from 18.5 percent last year.
The company reported net income for the quarter of $125.1 million, or 66 cents a diluted share, up from $119.3 million, or 63 cents a share, in the year-earlier quarter.
Garmin said GAAP earnings per share totaled 66 cents, a 5 percent improvement from last year, and pro-forma EPS was 75 cents, a 47 percent improvement.
“Our strong year continued in the third quarter of 2016, reporting solid results with four of our five business segments delivering double-digit sales growth and increased profitability,” Garmin president and CEO Cliff Pemble said in a statement.
The marine segment posted solid third-quarter revenue growth of 12 percent, driven by the company’s lineup of chart plotters, fishfinders and entertainment systems.
The company said gross margin increased year over year to 57 percent and the operating margin improved to 15 percent, resulting in operating income growth of 80 percent.
For the second year in a row Garmin was recognized as the Manufacturer of the Year by the National Marine Electronics Association, winning awards across a broad range of product categories.
Garmin also received the IBEX Innovation Award in the OEM Electronics category with the Fantom TM marine radar series.
“We are excited to see the continued positive customer reception of our fitness and outdoor wearables,” Pemble said. “Aviation and marine also achieved impressive double-digit growth on strong product offerings. We are maintaining our focus on innovation, diversification and market expansion to drive further growth opportunities in all business segments. Given the strong revenue and margin performance in the third quarter, we are raising our revenue and EPS guidance for the full year.”