SCHAFFHAUSEN, Switzerland - Garmin Ltd . (NYSE: NYSE:GRMN) reported a robust first quarter, outperforming analyst expectations with a significant earnings and revenue beat, sending its shares up by 3.28%. The company's record first quarter revenue and operating income were driven by strong demand across most of its business segments.
For the quarter ended March 30, 2024, Garmin announced a 20% increase in consolidated revenue to $1.38 billion, compared to $1.25 billion anticipated by analysts, marking a substantial beat. Adjusted EPS for the quarter was $1.42, surpassing the analyst estimate of $1.00 by $0.42 and representing a 39% growth over the prior year quarter. The company experienced record first quarter revenue growth in four of its five segments, with the fitness segment leading the way with a 40% increase.
Garmin's President and CEO, Cliff Pemble, attributed the impressive results to the company's robust product portfolio and strong demand trends. "We delivered outstanding performance in the first quarter with double-digit percentage growth in revenue and operating income," Pemble said.
Operating income for the quarter jumped to $298 million, a 51% increase compared to the prior year quarter. Gross margin and operating margins also expanded to 58.1% and 21.6%, respectively. The company's fitness, outdoor, aviation, and marine segments all contributed to the operating income growth, with particularly strong performance in the fitness segment, which saw operating income rise to $68 million.
Despite the strong first quarter, Garmin has not updated its 2024 guidance, maintaining its forecast for revenue of approximately $5.75 billion and adjusted EPS of $5.40. This guidance reflects the company's expectation that the first quarter typically represents the lowest seasonal quarter of the financial year.
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