Garmin Growth Explodes - Q3.2024 results show highly positive improvements Garmin's fitness division continues to grow, with a QonQ revenue growth of 31%. The outdoor division includes Fenix/Epix sales and shows a marked change compared to the results we saw in the last quarter. This time, growth is a solid 21% improvement. Perhaps last quarter, potential buyers knew the Fenix 8 was coming, and this quarter, they got their chequebooks out in anger! Looking at regional growth, Asia returned to what might be considered normal growth for Garmin - 18%. However, the change in EMEA is a phenomenal 40%; strangely, the Americas seem dull, with a 'mere' 15% growth. The official company commentary perhaps doesn't say too much that readers of this blog would be interested in product-wise other than Fenix 8, which appears to be highly profitable for the company. Fitness: ...during the quarter we announced updates to Garmin Coach, adding training plans for cyclists in addition to the existing training plans for runners, making it easier to prepare for an event, pursue a personal milestone or improve overall fitness. Outdoor: ... Gross and operating margins were 68% and 40%, respectively, resulting in $209 million of operating income. During the quarter, we launched both the highly anticipated fenix 8 series, adding brilliant AMOLED displays, cutting edge features, a built-in speaker, microphone, and an LED flashlight, and the Enduro 3, a lightweight ultraperformance GPS smartwatch purpose-built for ultra-endurance athletes with up to 320 hours of battery life in GPS mode with solar charging. We also launched the inReach Messenger Plus, our first satellite communicator with photo and voice messaging in addition to two-way texting, location sharing and SOS capabilities, expanding our customers’ ability to stay in touch beyond cell service.[Pemble, CEO] Share Price Growth Garmin's share price rose significantly today, well ahead of rises in the wider NASDAQ, which is probably a better comparator than the NYSE, where Garmin is listed. I've followed Garmin's share price reaction to its quarterly earnings results for several years, and +20% is by far the most starkly positive reaction I can remember. Previous Quarter's View Here. Cash Garmin's cash position increases every quarter. It now exceeds $2.0 billion, which is an important milestone. Maybe it's time for them to blow it on a questionable acquisition like Peloton. (A: No!) Take Out The markets didn't like the results of the prior quarters, and the sentiment since then has been negative in many places. However, the current quarter has exceeded everyone's expectations. I also admit surprise at the apparent mega-success of Fenix 8, an expensive watch if ever there was one.
