Garmin Ltd. (NYSE:GRMN) Q2 2024 Earnings Conference Call July 31, 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
George Wang - Barclays
David MacGregor - Longbow Research
Jordan Lyonnais - Bank of America
Benjamin Bollin - Cleveland Research
Ivan Feinseth - Tigress Financial Partners
Noah Zatzkin - KeyBanc Capital Markets
Erik Woodring - Morgan Stanley

Operator

Thank you for standing by. My name is Christina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Garmin Limited Second Quarter 2024 Earnings Conference Call. [Operator Instructions]

I will now turn the floor over to Teri Seck, Director of Investor Relations. Teri, you may begin.

Teri Seck

Good morning. We would like to welcome you to Garmin Limited's second 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 transcript 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, revenues, segment growth rates, earnings, gross margins, operating margins, future dividends or share repurchases, market shares, product introductions, 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 another quarter of outstanding results with double-digit growth in consolidated revenues and operating income.

Consolidated revenue increased 14% to $1.51 billion, a new second quarter record, with three business segments reporting strong double-digit growth. Gross margin was 57.3%, operating margin expanded to 22.7%, resulting in operating income of $342 million, up 20% year-over-year. We reported pro forma EPS of $1.58, up 9% over the prior year, which is a remarkable result considering the significantly higher effective tax rate.