Garmin Ltd. stock research
FY2024 Q3
Garmin (GRMN) Gross Margin — Quarter Ended Sep 28, 2024
Gross margin improved compared to both the prior quarter and the same quarter last year. Revenue increased while cost of revenue remained relatively stable, leading to higher gross profit.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q3
Gross margin improved compared to both the prior quarter and the same quarter last year. Revenue increased while cost of revenue remained relatively stable, leading to higher gross profit.
- The most observable driver is the disparity between revenue growth and cost of revenue change. Revenue rose sharply while cost of revenue declined slightly sequentially and increased moderately year-over-year, resulting in margin expansion.
- Compared with the prior quarter, revenue was higher and cost of revenue was slightly lower, yielding a higher gross margin. Compared with the same quarter last year, both revenue and cost of revenue were higher, but revenue grew at a faster pace, improving gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.0%
Gross profit
$951.6M
Revenue
$1.6B
Cost of revenue
$634.4M
Quarter-over-quarter change
+2.7 pts
Year-over-year change
+3.0 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 |
|---|---|---|---|---|
| Dec 30, 2023 | $1.5B | $864.1M | $618.4M | 58.3% |
| Mar 30, 2024 | $1.4B | $802.1M | $579.5M | 58.1% |
| Jun 29, 2024 | $1.5B | $862.9M | $643.8M | 57.3% |
| Sep 28, 2024 | $1.6B | $951.6M | $634.4M | 60.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
+2.7 pts
Year-over-year change
Sep 30, 2023
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the disparity between revenue growth and cost of revenue change. Revenue rose sharply while cost of revenue declined slightly sequentially and increased moderately year-over-year, resulting in margin expansion.
Compared with the prior quarter, revenue was higher and cost of revenue was slightly lower, yielding a higher gross margin. Compared with the same quarter last year, both revenue and cost of revenue were higher, but revenue grew at a faster pace, improving gross margin.
Monitor whether revenue growth continues to outpace cost increases in future quarters.