Garmin Ltd (NYSE:GRMN), a leader in GPS technology and wearable devices, announced impressive financial results for the fourth quarter and full fiscal year ending December 28, 2024.
The company reported a significant increase in revenue and operating income, marking a period of substantial growth. In the fourth quarter alone, revenue surged by 23% year-over-year to reach $1.82 billion, while operating income jumped by 52% to $516 million.
For the entire fiscal year, Garmin achieved a 20% increase in revenue, totaling $6.30 billion, with each business segment reporting record revenues. The company has proposed a 20% hike in annual dividends and repurchased $33 million in shares.
This strong performance has set the stage for a promising year ahead, with projections for continued growth in 2025.
Fitness Segment Growth Fuels Financial Success
Garmin’s financial achievements were driven by notable gains across its business segments. The fitness segment, in particular, saw a remarkable 31% increase in revenue, reflecting the growing consumer demand for health and fitness technology. Additionally, the outdoor segment posted a 29% rise in revenue, underscoring the popularity of Garmin’s products in this category.
These gains reflect the company’s strategic focus on innovation and market expansion, which have been key components of its success. By capitalizing on emerging trends and consumer preferences, Garmin has positioned itself as a leader in the industry, with a strong foundation for future growth.
GRMN Hits All-Time High on Record Performance
Garmin’s stock performance mirrored its financial success, reaching an all-time high of $236.84. The stock opened at $238.00 and climbed to a current price of $242.26 as of February 19, 2025. This represents a significant increase from the previous close of $214.78, highlighting the confidence investors have in the company’s prospects. The stock’s day low was $229.33, while the day high reached $242.96, surpassing the previous 52-week high.
With a market capitalization of $46.52 billion and a dividend yield of 1.4%, Garmin’s stock is attracting considerable attention from investors. Analysts have issued a “Hold” recommendation, with a target high price of $265.00, reflecting the potential for further appreciation.
Garmin’s financial metrics paint a picture of a well-positioned company in the market. The trailing price-to-earnings ratio stands at 30.82, with a forward P/E of 32.47, indicating strong investor expectations for future earnings. The company’s book value is $39.07, with a price-to-book ratio of 6.20, and a debt-to-equity ratio of 1.91, suggesting a solid balance sheet.
Garmin’s quick ratio of 2.13 and current ratio of 3.3 further demonstrate its financial health and ability to meet short-term obligations. With total revenue at $5.96 billion and a short ratio of 4.1, Garmin is maintaining a competitive edge in the market.
Looking ahead, Garmin is projecting continued growth in 2025, with expected revenue of $6.80 billion and a pro forma earnings per share of $7.80. The company’s strategic initiatives and focus on innovation are expected to drive its expansion in the coming year.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.