Garmin, the leading technology company, has recently announced its first quarter results for 2023 and they have surpassed expectations by a landslide. As a proud owner of a Garmin watch with vegan straps, I can attest to the excellent quality and functionality of its products.
Garmin has always been committed to producing high-quality, innovative products that cater to the diverse needs of its customers. My Garmin watch has been an invaluable tool in my fitness journey, helping me keep track of my workouts, monitor my heart rate, and even remind me to stay active throughout the day. The vegan straps are an added bonus, as they are both comfortable and sustainable.
The company’s recent success is a testament to its commitment to excellence, and its willingness to push boundaries and set new standards. Whether you’re into yoga, running, pilates, or any other form of exercise, Garmin has a product that will suit your needs.
Overall, I’m thrilled to hear about Garmin’s record-breaking first-quarter results. As a loyal customer, I can confidently say that the company deserves every bit of its success, and I look forward to seeing what new products it will release in the future. If you’re looking for a reliable, high-quality fitness tracker, I highly recommend giving Garmin a try.
Garmin® Ltd. (NYSE: GRMN) announced its Q1 2023 results, reporting a 2% decrease in consolidated revenue to $1.15 billion compared to the same quarter last year.
The company reported growth in the Fitness, Aviation, Marine, and Auto OEM segments, with the Outdoor segment experiencing a decline in revenue due to decreases in adventure watch sales. The gross margin increased to 56.9%, while the operating margin was 17.2%. Garmin® introduced several new products, including Forerunner 265 and Forerunner 965, the GPSMAP 67 Series, and eTrex SE handhelds. The company also announced that the crew members on the upcoming Polaris Dawn space mission would wear the fēnix 7 adventure watches. The products introduced during Q1 2023 drove the growth in the four aforementioned segments. The CEO expressed his excitement about the company’s future and expects many more new products to be introduced throughout the year.
2023 Fiscal Year Guidance:
We confirm our 2023 fiscal year guidance, which projects revenue of approximately $5.00 billion and pro forma EPS of $5.15 (refer to the attached discussion on Forward-looking Financial Measures).
As previously announced in February, the Board will propose to the shareholders for approval at the annual meeting on June 9, 2023, a cash dividend of $2.92 per share (subject to potential adjustments based on the total dividend amount in Swiss Francs approved at the annual meeting), payable in four equal quarterly installments.
Webcast Information/Forward-Looking Statements:
Garmin Ltd.’s earnings call took place as follows:
Wednesday, May 3, 2023, at 10:30 a.m. Eastern Time
This release includes forward-looking statements and projections concerning Garmin Ltd. and its business, which are commonly identified by terms such as “anticipates,” “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other similar words or phrases. Such forward-looking statements include, but are not limited to, the Company’s projected fiscal 2023 GAAP and pro forma estimated earnings, EPS, and effective tax rate, expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, potential future acquisitions, share repurchase programs, currency movements, expenses, pricing, new product launches, market reach, statements regarding possible future dividends, statements related to the ongoing impact of the COVID-19 pandemic, and the Company’s plans and objectives. The forward-looking events and circumstances discussed in this release may not occur, and actual results could differ materially due to risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors described in Garmin’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (Commission file number 001-41118). A copy of Garmin’s 2022 Form 10-K is available for download at https://www.garmin.com/en-US/investors/sec/. All information provided in this release and its attachments is as of April 1, 2023. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us as of the date of this release. We do not assume any obligation to update this information unless required by law.
This release and its attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company’s use of these measures are included in the attachments.
Garmin, the Garmin logo, the Garmin delta, Echomap, eTrex, fēnix, Forerunner, GFC, GPSMAP, Instinct, Navionics, and zūmo are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the United States. The drive is a trademark of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks, and service marks are the properties of their respective owners. All rights reserved.
This release includes non-GAAP financial measures, which are presented to supplement our financial results in accordance with GAAP. The measures include pro forma effective tax rate, pro forma net income (earnings) per share, and free cash flow. These measures are not based on any comprehensive set of accounting principles and should not be considered a substitute for, or superior to, GAAP measures. The usefulness of these measures for comparison with other companies may be limited as they may differ from non-GAAP measures used by other companies. However, management believes that providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company.
The pro forma effective tax rate is disclosed to permit investors a consistent comparison between periods, as the Company’s income tax expense may be periodically impacted by discrete tax items. Net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items are disclosed to allow for a consistent comparison of the Company’s performance between periods, according to management.
According to management, free cash flow is a crucial metric for assessing liquidity as it indicates the cash available for investing, calculated by subtracting capital expenditures for property and equipment from operating cash flows. By excluding these purchases, the metric provides a more accurate picture of the underlying operational trends, facilitating comparisons of results between periods. However, investors should not rely solely on this measure as it does not reflect the cash flow available for discretionary expenses. Net cash provided by operating activities is the most comparable GAAP measure.
Final: Disclaimer on Forward-looking Financial Measures
The financial measures provided in our 2023 guidance are forward-looking and exclude the potential impact of foreign currency exchange gains and losses, discrete tax items, and other pro forma adjustments that may be identified in calculating non-GAAP measures, as described above. Due to the high variability and low visibility of non-operating foreign currency exchange gains and losses, the estimated impact of such gains and losses cannot be reasonably determined on a forward-looking basis. In the 13 weeks ending April 1, 2023, foreign currency gains and losses, net of tax effects, had an impact of $0.03 per share on diluted net income per share. We cannot predict whether significant discrete tax items will occur in fiscal 2023 or the potential impact of any other events that may affect non-GAAP financial measures. This information is provided by Garmin International, Inc. as a disclaimer for the forward-looking financial measures provided in our guidance.
(PR Source Garmin International – https://bit.ly/42cVRg7)