Garmin Ltd GRMN reported a 6% year-over-year decline in revenue to $1.31 billion in the fourth quarter of fiscal 22, beat the consensus of $1.30 billion.

• Fitness revenue declined 28% year-on-year to $336.55 million, outdoor grew 3% year-on-year to $388.26 million, aviation grew 27% year-on-year to $225.25 million -Dollar, marine was up 7% year-on-year to $210.61 million and auto sales were down 14% y/y to $145.68 million.
• Margins: Gross margin increased 150 basis points to 57%. Operating margin fell 210 basis points to 20.5% as expenses rose 4.6% year over year.
• Pro forma EPS of $1.35 beat the consensus of $1.11.
• Garmin generated free cash flow of $309.31 million. It held $2.7 billion in cash and equivalents.
• “Our performance in 2022 was solid, even as we faced increasing headwinds impacting the business environment and consumer behavior,” he said Cliff Pemble, President and CEO of Garmin. “We enter 2023 with a strong product range and many more product launches are planned throughout the year.”
• Outlook: Garmin expected FY23 revenue outlook of $5.00 billion, below the consensus of $5.15 billion.
• Garmin was expecting pro forma EPS of $5.15, below the consensus of $5.45.

Price promotion: GRMN shares were trading up 1.27% at $95.15 at the last check on Wednesday.

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