Garmin (GRMN) Q3 Earnings Beat Estimates, Sales Rise Y/Y

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Garmin (GRMN) Q3 Earnings Beat Estimates, Sales Rise Y/Y

Garmin Ltd. GRMN has reported third-quarter 2021 pro-forma earnings of $1.41 per share, beating the Zacks Consensus Estimate by 11.02%.

Nonetheless, the final analysis declined 11% on a twelve months-over-twelve months basis.

Acquire sales were $1.19 billion, which surpassed the Zacks Consensus Estimate of $1.15 million. The resolve increased 7% from the twelve months-ago quarter.

Prime-line development used to be driven by the strong efficiency delivered by the corporate’s marine, auto, aviation and fitness segments.

Garmin’s strong center of attention on continued innovation, diversification and market expansion to explore opportunities across all industry segments stays a serious distinct. Its strong product lines are expected to support its efficiency within the design interval of time.

– Zacks

Segmental Details

Outside (27.2% of derive sales): The segment generated sales of $323.9 million within the reported quarter, declining 3% twelve months over twelve months. This used to be attributed to final twelve months’s timing of product launches.

Health (28.7%): The segment generated sales of $342.3 million, which increased 4% from the twelve months-ago quarter. This might well well also furthermore be primarily attributed to its properly-performing developed wearables and cycling merchandise.

Aviation (15.1%): The segment generated sales of $180.2 million, increasing 19% on a twelve months-over-twelve months basis. This used to be driven by a fantastic momentum across OEM and aftermarket merchandise.

Marine (17.4%): Garmin generated sales of $207.5 million from the segment, increasing 25% on a twelve months-over-twelve months basis. The company witnessed strong momentum across chartplotters within the reported quarter, which, in flip, drove the segment’s revenues.

Auto (11.6%): The segment generated sales of $138.1 million, up 7% from the prior-twelve months quarter. This used to be primarily driven by strengthening momentum across auto OEM programs.

Working Outcomes

In the third quarter, the substandard margin used to be 58.4%, which shriveled 180 basis capabilities (bps) from the twelve months-ago interval.

The company’s working charges of $413.3 million were up 17.8% from the prior-twelve months quarter. As a percentage of revenues, the resolve expanded 310 bps twelve months over twelve months to 34.7%.

The working margin of 23.7% within the reported quarter shriveled 490 bps twelve months over twelve months.

Balance Sheet & Cash Drift

As of Sep 25, 2021, money, money equivalents and marketable securities were $1.98 billion, greater than $1.97 billion as of Jun 26, 2021.

In the third quarter, inventories were $1.11 billion when put next with $938.6 million within the 2nd quarter. We snarl that the corporate had no long-interval of time debt for the reported quarter.

It generated $245.4 million in money from operations within the reported quarter when put next with $229.7 million within the outdated quarter.

The company generated a free money float of $204.01 million.

Garmin paid out dividends price $129 million to shareholders within the third quarter.

2021 Steering

The company raised the guidance for derive sales from $4.9 billion to $4.95 billion. The Zacks Consensus Estimate for 2021 derive sales is pegged at $4.94 billion.

Garmin raised the guidance for educated-forma earnings from $5.50 per share to $5.60 per share. The consensus ticket for 2021 earnings is pegged at $5.60 per share.

The company has revised the guidance for the working margin upward from 23.8% to 24%. The substandard margin guidance has been revised downward from 58.5% to 58.2%.

Zacks Infamous and Other Stocks to Have in recommendations

In the within the meantime, Garmin carries a Zacks Infamous #3 (Help).

Some different top-ranked shares within the broader know-how sector are Lam Be taught LRCX, Coupa Tool, Inc. COUP and Trimble Inc. TRMB. All three companies currently raise a Zacks Infamous #2. Which you might well well perhaps also scrutinize the total checklist of this day’s Zacks #1 Infamous (Genuine Purchase) shares here.    

The long-interval of time earnings development charges of Lam Be taught, Coupa Tool and Trimble are pegged at 17.01%, 24.28% and 10%, respectively.

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