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SCHAFFHAUSEN, Switzerland – Garmin Ltd . (NYSE: NYSE:) shares soared, climbing 5.5% as the tech company reported a robust fourth quarter, surpassing analyst expectations with an adjusted EPS of $1.72, a significant $0.32 higher than the consensus of $1.40. The company’s revenue also outperformed, reaching $1.48B against the anticipated $1.41B.
The company’s fourth-quarter success was marked by a 13% increase in consolidated revenue compared to the same quarter last year, with notable growth across several segments, including a 22% rise in the fitness sector. Gross margin expanded to 58.3%, and operating margin improved to 23.0%, contributing to a 27% growth in adjusted EPS year-over-year (YoY).
Garmin’s President and CEO, Cliff Pemble, expressed satisfaction with the company’s financial performance, highlighting record full-year consolidated revenue and record revenue in three of the five segments. “We are entering 2024 with strong momentum from our robust product lineup and have many product launches planned during the year,” Pemble stated.
Looking ahead to the full year 2024, Garmin anticipates revenue to reach approximately $5.75B, representing a 10% increase over 2023 and exceeding the consensus estimate of $5.555B. However, the company’s projected adjusted EPS of $5.40 for FY2024 falls slightly below the analyst consensus of $5.61.
The company’s forward momentum is further supported by a proposed dividend increase and the announcement of a share repurchase program, signaling confidence in continued financial growth and shareholder value enhancement.
Investors reacted positively to the earnings beat and optimistic revenue guidance for the upcoming year, as reflected in the stock’s upward movement. Garmin’s comprehensive product portfolio and strategic initiatives appear to position the company favorably for sustained growth in the competitive tech market.
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