Garmin Ltd. (NASDAQ: GRMN) reported fourth-quarter and full-year 2013 results before markets opened Wednesday. For the quarter, the GPS equipment maker posted adjusted diluted earnings per share (EPS) of $0.76 on revenues of $759.7 million. In the same period a year ago, the company reported EPS of $0.68 on revenues of $768.5 million. The quarterly results also compare to the Thomson Reuters consensus estimates for EPS of $0.62 and $712.78 million in revenues.
For the full year, Garmin posted EPS of $2.62 on revenues of $2.63 billion, compared with EPS of $2.85 and revenues of $2.72 billion in 2012. The consensus estimates called for EPS of $2.47 on revenues of $2.59 billion.
The company posted double-digit revenue growth for the quarter in its fitness, aviation and marine segments, offsetting a 12% decline in its auto and mobile segment. The firm’s outdoor segment also posted revenue growth of 7%, posting quarterly revenue of $410 million, more than half the firm’s total.
For 2014, Garmin guides revenue in a range of $2.6 to $2.7 billion and EPS at $2.50 to $2.60. Overall gross margin is forecast at 54% to 55%, and operating margin is estimated at approximately 21%.
The company’s CEO said:
In the fourth quarter, we also achieved operating income growth in all five segments. This success serves as a solid starting point for 2014 and highlights the strength of our diversified product portfolio.
Garmin will recommend at its June annual meeting an increase in its yearly dividend from $1.80 to $1.92. If approved, the new dividend rate would be payable beginning in the second quarter of this year.
Garmin shares were up more than 5% early Wednesday, at $49.57 in a 52-week range of $32.52 to $52.72. Thomson Reuters had a consensus analyst price target of around $50.00 before this report.
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