Garmin Reports Impressive Q4 2024: EPS and Revenue Beat Estimates

Garmin's Q4 2024 results exceeded expectations with strong revenue growth and an impressive EPS. The company's performance demonstrates robust business execution amid competitive pressures, signaling potential positive impacts on its stock prices moving forward.

Date: 19-02-2025

AI Rating: 7

Earnings Per Share (EPS)
Garmin reported a Pro Forma EPS of $2.41, which surpassed analysts' expectations of $2.05. This signifies a 40% increase from the prior year’s EPS of $1.72. The strong growth in EPS indicates a positively trending management performance and profitability, likely to enhance investor confidence.

Revenue Growth
The company achieved a revenue of $1.82 billion, exceeding the estimated $1.70 billion by 23%. This substantial increase from $1.48 billion in Q4 2023 reflects strong demand across various segments and effective market strategies, which positively influences investor sentiment.

Profit Margins
Garmin's gross margin improved to 59.3%, up from 58.3% year-on-year. Similarly, the operating margin increased to 28.3% from 23.0%, showing enhanced operational efficiencies. Such improvements in profit margins suggest a strong operational performance which could contribute to higher valuations in the stock market.

Free Cash Flow (FCF)
Garmin reported a free cash flow of $399 million, which is a decline of 4.3% compared to the previous year's $417 million. While there is a slight decline, the overall cash generation remains solid, indicating healthy financial health, although the decrease may raise concerns among some investors.

Outlook
For fiscal 2025, Garmin's projected revenue of around $6.8 billion and pro forma EPS of $7.80 suggests confidence in continued growth. This forward guidance could further excite investors looking for stability and growth potential in their portfolios. Additionally, Garmin's strategy to focus on premium markets and continued innovation enhances its competitive edge.

Overall, Garmin's Q4 2024 performance demonstrates a well-rounded financial health and effective execution strategy, which are favorable indicators for stock price appreciation.

Stocks: GRMN