OLATHE, Kan. (BRAIN) — Garmin Ltd. total revenue increased 18% in the fourth quarter with the fitness division — which includes Garmin's cycling products — increasing 34% year-over-year.
For 2019, Garmin experienced consolidated revenue growth of 12% overal and 22% for fitness, which was buoyed by the acquisition of Dutch indoor smart trainer company Tacx last February, and advanced wearables. Gross margin was 48% and operating margin 20%, resulting in 26% operating income growth.
"We entered 2020 with a great lineup of recently introduced products with more on the way," said Cliff Pemble, president and chief executive officer of Garmin. "We are excited about the future because each business segment offers unique growth opportunities for 2020 and beyond."
Fourth-quarter total revenue was $1.1 billion, with fitness, aviation, marine and outdoor collectively increasing 24% over last year's quarter. That beat expected projection by 8.9%. For the year, consolidated revenue was $3.8 billion, with fitness, aviation, marine and outdoor collectively rising 18% over 2018.
GAAP pro forma EPS for the fourth quarter was $1.29, up 26% year-over-year, and 22% over expectations. For the year, GAAP pro forma EPS was $4.45, 21% over 2018.
Garmin projects 2020 revenue of about $4 billion, with growth in fitness, outdoor and marine offsetting declines in the auto division. It expects full year pro forma EPS to be about $4.60 based upon gross margin of approximately 59.2%, operating margin of approximately 23.5% and a full year pro forma effective tax rate of about 10.0%.
Garmin's corporate headquarters is in Olathe. Its stock is traded on the NASDAQ under the GRMN symbol. Stock quote at Marketwatch.com.
