PHOTO COURTESY GARMIN Garmin yesterday posted results of its fiscal year and fourth quarter 2023.
The electronics manufacturer reported consolidated revenue of $1.48 billion in the fourth quarter of 2023, a 13% increase compared to the same quarter in the prior year. Gross margin expanded to 58.3% from 57% in the quarter, and operating margin was 23% compared to 20.5% in the prior-year quarter.
For fiscal year 2023, Garmin reported record consolidated revenue of $5.23 billion, an 8% increase over 2022. Gross margin was down from 57.7% to 57.5% and operating margin was nearly identical at 20.9% versus 21.1%.
“We are very pleased with our 2023 financial performance resulting in record full year consolidated revenue and record full year revenue in three of our five segments,” Cliff Pemble, president and chief executive officer of Garmin Ltd., said in a statement. “We are entering 2024 with strong momentum from our robust product lineup and have many product launches planned during the year.”
In the marine segment, revenue increased 14% in the fourth quarter thanks in part to contributions from the acquisition of JL Audio. Gross and operating margins were 53% and 16%, respectively, resulting in $37 million of operating income.
For Garmin Ltd, total operating expenses for the fourth quarter were $524 million, a 10% increase over the previous year. Research and development increased 10% primarily due to engineering personnel costs. Selling, general and administrative expenses increased 10% driven primarily by personnel related expenses and incremental costs associated with the acquisition of JL Audio. Advertising expenses also increased by 6%.
The company’s 2024 full-year guidance includes revenue of approximately $5.75 billion, an increase of approximately 10% over 2023. It expects full-year pro forma EPS to be approximately $5.40 based upon gross margin of approximately 56.5%, operating margin of approximately 20.0% and pro forma effective tax rate of approximately 15.5%.
