The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Garmin missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins dropped.
Garmin reported revenue of $768.5 million. The 12 analysts polled by S&P Capital IQ predicted a top line of $833.4 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $909.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.68. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. Non-GAAP EPS of $0.68 for Q4 were 20% lower than the prior-year quarter's $0.85 per share. GAAP EPS of $0.66 for Q4 were 22% lower than the prior-year quarter's $0.85 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.6%, 90 basis points better than the prior-year quarter. Operating margin was 19.5%, 250 basis points worse than the prior-year quarter. Net margin was 16.8%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $546.2 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $2.76 billion. The average EPS estimate is $2.81.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 4,319 members out of 4,765 rating the stock outperform, and 446 members rating it underperform. Among 1,075 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 966 give Garmin a green thumbs-up, and 109 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Garmin is outperform, with an average price target of $45.72.
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