Garmin raised its annual outlook on October 28 after reporting record third-quarter revenue and operating income, according to its earnings release.
Sales reached approximately $1.99 billion, up 12% from a year earlier. Operating income increased 34% to $612 million, with an operating margin of 30.8%. The results cover the quarter ended September 26.
Fitness revenue increased 16%, led by wearables, while outdoor revenue rose 20%, primarily reflecting adventure watches. Aviation sales grew 5% and marine sales increased 16%. Revenue from automotive original-equipment customers declined 20%.
Garmin reported earnings of $2.80 per share under standard accounting rules and pro forma earnings of $2.76. The pro forma measure, which adjusts specified items, increased 39%.
The company now expects full-year revenue of approximately $8.15 billion and pro forma earnings of $10.80 per share. Those forecasts assume a gross margin of 61% and an operating margin of 29%.
Operating cash flow totaled $394 million during the quarter. Garmin said lower product costs, sales mix and approximately $33 million in tariff refunds helped its gross margin.
Sources: Garmin earnings release, distributed by PR Newswire.