Garmin has just announced its Q4.2024 results, which are strong in many places.
Record consolidated revenue of $6.30 billion, a 20% increase compared to the prior year
Of particular note to regular readers of this blog, Fitness (Forerunner, Edge) and Outdoor (Fenix) each had about 30% growth compared to the same quarter in the prior year. There was a similar picture for the fitness division for the entire year, but less for the outdoor division.
Fitness:
Revenue from the fitness segment increased 31% …During the quarter, we launched Lily 2 Active…We also recently released
our 2024 Connect Fitness Report.
Outdoor:
Revenue from the outdoor segment increased 29% in the fourth quarter with growth led by adventure watches.
…we launched the Approach R50…also launched the Descent X50i.
Looking at the various regional pictures, any growth of 15-20% must be good, but the EMEA region posted over 30% growth – from memory, that was based on somewhat depressed figures from the prior period.
I commented on the cash position 3 months ago. Still, it’s worth saying again that Garmin has $2bn of cash—enough to weather almost any economic storm.
Against Expectations
Good growth is one thing, but it only affects the share price if it differs from expectations.
These results were better than the consensus expectations, with today’s share price growth FAR outstripping growth in the NASDAQ.
Seeing how things will stack up on the demand side is always tricky as living standards continue to be squeezed. I guess the hope on the near horizon at the macro level would be a Trump-led resolution of the uncertainty around Ukraine, of course, that doesn’t negate other serious geopolitical risks elsewhere.
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