Garmin reports record third quarter operating results

Garmin Ltd. announced results for the third quarter ended September 26.

Highlights for third quarter 2020 include:

• Total revenue of over $1.1 billion, a 19% year-over-year increase, led by robust growth in marine, fitness and outdoor
• Gross margin and operating margin were 60.2% and 28.6%, respectively
• Operating income of $317 million, increasing 21% over the prior year quarter
• GAAP diluted EPS was $1.63 and pro forma diluted EPS⁽¹⁾ was $1.58, increasing 24% over the prior year quarter
• Named Manufacturer of the Year by the National Marine Electronics Association for the sixth consecutive year
• Since its launch in 2011, Garmin inReach® has provided remote communication and rescue facilitation in over 5,000 SOS incidents, demonstrating the crucial importance of satellite based two-way messaging wherever our customers need assistance

Revenue from the marine segment grew 54% in the third quarter across multiple categories led by chartplotters. Gross margin and operating margin were 61% and 31%, respectively, resulting in 152% operating income growth.

For the sixth consecutive year, Garmin was recognized as the Manufacturer of the Year by the National Marine Electronics Association (NMEA) and was also awarded four Product of Excellence awards.

The company also launched the new OnDeck system, Garmin’s first remote connectivity solution for boaters to track, monitor, and remotely control switches on their vessel from virtually anywhere. They also refreshed our Fantom solid-state marine radar offering industry leading power in the solid-state RADAR market.

“Demand for active lifestyle products fueled strong revenue growth resulting in record revenue and profits for the quarter,” said Cliff Pemble, President and CEO of Garmin. “Interest in our products remains high as we move into the important holiday selling season, and we are prepared with a strong lineup of products that offer the innovation and uniqueness that consumers want.”