Garmin Sets New Records with 23% Revenue Growth in Q4 2024
Garmin Limited, a leading provider of navigation and communication devices, has reported another quarter of outstanding financial results. In its latest conference call transcript from February 19th, the company announced that consolidated revenue increased by 23% to $1.82 billion, a new fourth-quarter record.
The impressive growth was driven by all five business segments, with Fitness segment leading the way, experiencing a 32% increase in revenue to $1.77 billion. The segment's gross margin also expanded significantly, improving by 480 basis points to 58%, primarily due to lower product costs and favorable mix.
"2024 was an exciting year for our Fitness segment as demand for running, cycling, and wellness products has been robust," said Cliff Pemble, President and Chief Executive Officer of Garmin. "We experienced growth in every product category, led by strong contributions from advanced wearables."
The company's Outdoor segment also delivered a strong performance, with revenue growth driven by new product achievements and increased demand for outdoor-related products.
Garmin's overall financial performance was equally impressive, with gross margin expanding 100 basis points to 59%, operating income increasing 52% year-over-year, and operating margin expanding over 500 basis points to 28%. This resulted in pro forma EPS of $2.41, up 40% over the prior year.
Looking ahead, Garmin is optimistic about its future prospects, with many new product launches planned for 2025 that will further strengthen its portfolio and drive growth. The company anticipates consolidated revenue to increase approximately 8% to $6.8 billion in 2025 and expects fitness revenue to increase approximately 10% for the year.
Garmin's strong results have also given it confidence to propose an annual dividend of $3.60 a share, reflecting a 20% increase over the prior dividend amount, which will be considered by shareholders at the upcoming annual meeting.
The company's performance is a testament to its robust product portfolio and commitment to innovation, as well as its ability to adapt to changing market conditions.
