Garmin Ltd (NYSE:GRMN) Q1 2024 Earnings Conference Call May 1, 2024 10:30 AM ET

Company Participants

Teri Seck - Manager, IR
Clifton Pemble - President, CEO & Director
Douglas Boessen - CFO & Treasurer

Conference Call Participants

Joseph Cardoso - JPMorgan Chase & Co.
Dong Wang - Barclays Bank
Jordan Lyonnais - Bank of America Merrill Lynch
Benjamin Bollin - Cleveland Research Company
David MacGregor - Longbow Research
Erik Woodring - Morgan Stanley
Noah Zatzkin - KeyBanc Capital Markets

Operator

Thank you for standing by, and welcome to the Garmin Limited First Quarter 2024 Earnings Call. [Operator Instructions]. Finally, a reminder that this conference is being recorded. I would now like to turn the conference over to Teri Seck, Director of Investor Relations. Please go ahead.

Teri Seck

Good morning. We would like to welcome you to Garmin Ltd.'s First Quarter 2024 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 Ltd. and its business. Any statements regarding our future financial position, revenues, segment growth rates, 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 Ltd. 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 first quarter with strong growth in consolidated revenue and operating income. The positive trends we experienced at the close of 2023 strengthened in the first quarter of 2024. Consolidated revenue increased 20% to $1.38 billion, a new first quarter record with 4 segments delivering double-digit growth. Gross and operating margins expanded year-over-year to 58.1% and 21.6%, respectively, resulting in record first quarter operating income of $298 million, up 51% year-over-year. This resulted in pro forma EPS of $1.42, up 39% over the prior year, which is a remarkable result considering the significantly increased Swiss tax rates.