Garmin's 4 Of 5 Segments Achieve Double-Digit Revenue Growth In Q1 FY23

Garmin Ltd GRMN reported a first-quarter FY23 revenue decline of 2% year-on-year to $1.15 billion, beating the consensus of $1.08 billion.

Revenue from Fitness grew by 11% Y/Y to $244.7 million, Outdoor declined by 27% Y/Y to $328.7 million, Aviation improved by 22% Y/Y to $213.6 million, Marine increased 10% Y/Y to $279 million, and Auto OEM grew 11% Y/Y to $81.5 million.
Margins: The gross margin expanded by 40 bps to 56.9%. The operating margin contracted 230 bps to 17.2% as expenses increased 5% Y/Y.
Proforma EPS of $1.02 missed the consensus of $1.06.
Garmin generated $232.4 million in free cash flow. It held $2.7 billion in cash and equivalents.
"2023 is off to a good start with four of our five segments posting double-digit revenue growth driven by new product introductions and solid demand trends. We are excited about what lies ahead as we anticipate many more exciting product introductions throughout the remainder of the year," said Cliff Pemble, president and chief executive officer of Garmin Ltd.
Outlook: Garmin maintains an FY23 revenue outlook of $5.00 billion, below the consensus of $5.01 billion.
Garmin expected proforma EPS of $5.15, below the consensus of $5.23.