Garmin Ltd. reported fourth-quarter FY21 revenue growth of 3 percent year-on-year to $1.39 billion, beating the consensus of $1.36 billion.
Revenue from Fitness was flat Y/Y at $470 million, Outdoor declined 8 percent Y/Y to $378.2 million, Aviation improved 13 percent Y/Y to $177.6 million, Marine jumped 14 percent Y/Y to $196.5 million, and Auto sales grew 21 percent Y/Y to $169.2 million.
Margins
The gross margin contracted 300 bps to 55.5 percent as costs rose 10.5 percent Y/Y.
The operating margin contracted 490 bps to 22.6 percent as expenses increased 8.9 percent Y/Y.
Pro forma EPS of $1.55 beat the consensus of $1.37.
Net cash provided by operating activities totaled $168.96 million with $49.3 million in free cash flow. It held $3.1 billion in cash and equivalents.
The company’s board intends to recommend to the shareholders for approval at the June 10 annual meeting an increased cash dividend of $2.92 per share, to be paid in four installments of $0.73 per share.
The company’s prior approved dividend of $0.67 per share is payable on March 31, 2022, with March 15, 2022, as the record date.
Outlook
Garmin sees FY22 revenue of $5.5 billion, above the consensus of $5.32 billion.
Pro forma EPS forecast of $5.90 is below the consensus of $6.23.
“2021 was another remarkable year as demand for our products led to strong double-digit annual revenue growth in each of our five segments,” said Cliff Pemble, CEO.
By Anusuya Lahiri
© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.
