Garmin Ltd. (NYSE:GRMN) Q4 2023 Earnings Conference Call February 21, 2024 10:30 AM ET

Company Participants

Teri Seck - Director of Investor Relations

Clifton Pemble - President and CEO

Douglas Boessen - Chief Financial Officer and Treasurer

Conference Call Participants

Joseph Cardoso - JPMorgan

George Wang - Barclays

David MacGregor - Longbow Research

Jordan Lyonnais - Bank of America

Erik Woodring - Morgan Stanley

Noah Zatzkin - KeyBanc Capital Markets

Benjamin Bollin - Cleveland Research

Ivan Feinseth - Tigress Financial Partners

Operator

Good morning, and welcome to the Garmin Limited Fourth Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks we'll have a question-and-answer session. [Operator Instructions]. As a reminder, this conference call is being recorded.

I would now like to turn the call over to Teri Seck, Director of Investor Relations. Thank you. Please go ahead.

Teri Seck

Good morning. We would like to welcome you to Garmin Limited's fourth quarter 2023 earnings call. Please note that the earnings press release and related slides are available at Garmin's Investor Relations site on the Internet at www.garmin.com/stock. An archive of the webcast and related transcripts will also be available on our website.

This earnings call includes projections and other forward-looking statements regarding Garmin Limited and its business. Any statements regarding our future financial position, revenue segment growth rate, earnings gross margins, operating margins, future dividends or share repurchases, market shares, product introduction, future demand for our products and plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this earnings call may not occur, and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission.

Presenting on behalf of Garmin Limited this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer.

At this time, I would like to turn the call over to Cliff Pemble.

Clifton Pemble

Thank you, Teri, and good morning, everyone. As announced earlier today, Garmin delivered outstanding results in the fourth quarter with strong growth in consolidated revenue and profit. Consolidated revenue increased 13% to nearly $1.5 billion, representing a new fourth quarter record with three business segments delivering double-digit growth. Gross and operating margins expanded year-over-year to 58% and 23%, respectively, resulting in operating income of $340 million, up 27% for the year. This resulted in pro forma EPS of $1.72, up 27% over the prior year.