Garmin Ltd. stock research
FY2023 Q4
Garmin (GRMN) Gross Margin — Quarter Ended Dec 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly versus both comparison periods, indicating that gross profit grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Dec 30, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly versus both comparison periods, indicating that gross profit grew faster than cost of revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue relative to both the prior quarter and the year-ago quarter, supporting the gross margin improvement.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.3%
Gross profit
$864.1M
Revenue
$1.5B
Cost of revenue
$618.4M
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+1.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 1, 2023 | $1.1B | $652.8M | $494.6M | 56.9% |
| Jul 1, 2023 | $1.3B | $759.4M | $561.4M | 57.5% |
| Sep 30, 2023 | $1.3B | $728.6M | $549.0M | 57.0% |
| Dec 30, 2023 | $1.5B | $864.1M | $618.4M | 58.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.3 pts
Year-over-year change
Dec 31, 2022
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue relative to both the prior quarter and the year-ago quarter, supporting the gross margin improvement.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Monitor the trend in cost of revenue relative to revenue, as any shift in this relationship could affect gross margin stability.