Garmin reports 4Q, year-end results

Garmin reported fourth-quarter 2015 revenue of $781.4 million, with outdoor, fitness, aviation and marine growing 11 percent.
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Garmin reported fourth-quarter 2015 revenue of $781.4 million, with outdoor, fitness, aviation and marine growing 11 percent from the quarter a year earlier and contributing more than 66 percent of the company’s total revenue.

The company reported $2.82 billion in revenue for the year that ended Dec. 26, with the four segments collectively growing 9 percent from 2014 and contributing 63 percent of Garmin’s total revenue.

Gross and operating margins were 52.9 percent and 18.7 percent for the quarter; they were 54.6 percent and 19.5 percent, respectively, for the year.

The company reported a fourth-quarter profit of $132.4 million, or 70 cents a diluted share, down from $210.2 million, or $1.09 a share, a year earlier.

For the full year, the company reported earning $456.2 million, or $2.39 a diluted share, up from $364.2 million, or $1.88 a share, in 2014.

“Despite the challenging global economic environment and the intensified competitive landscape of 2015, we finished strong, with revenue and margins exceeding our expectations,” Garmin president and CEO Cliff Pemble said in a statement. “We are utilizing our robust balance sheet to further diversify our revenue base in adjacent categories with our recently announced acquisitions. We believe we have strong products across all of our business segments and are well positioned as we enter 2016.”

The company said the marine segment posted revenue growth of 8 percent during the seasonally slow fourth quarter on the strength of new product offerings. Gross margin improved year-over-year in marine, to 54 percent, as the mix shifted toward new products with higher margin profiles.

During the quarter the company recorded additional litigation-related costs, leading to an operating loss of 10 percent. Garmin said it would have reported an operating profit, compared with a year-earlier loss, in the fourth quarter without the litigation costs.

“We recently announced the Striker series, a new line of fishfinders which redefine the entry-level fishfinder market with the addition of GPS capability,” the company said. “At recent boat shows we announced the quatix 3 wearable, the Garmin Nautix in-sight display and the GNX Wind, providing sailors important wind and boat data. In 2015 we delivered both revenue and profitability improvements as a result of our significant investment in recent years. We believe our product lineup is very strong and look forward to another year of growth in 2016.”

Garmin said it expects 2016 revenue of about $2.82 billion as growth in all non-auto segments offsets ongoing declines in the PND market.

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