Garmin Ltd. (NYSE: GRMN) reported fourth-quarter income that exceeded expectations on its earnings call Wednesday.
The company said its fourth-quarter income was $286 million or $1.48 per share, which beat projections of $1,44 per share. Still, it was a decrease from the fourth quarter of 2020, where sales were $333.55 million, or $1.73 a share for the quarter.
However, Garmin President and CEO Cliff Pemble celebrated the company’s “remarkable year,” saying Garmin saw double-digit annual revenue growth in four out of five segments.
“We are entering 2022 with a great lineup of recently introduced products and have more exciting product introductions planned throughout the year,” Pemble said in a statement.
For all of 2021, the company reported a profit across all segments of $1.08 billion, or $5.61 per share, and $4.98 billion in revenue.
Aviation Segment Rides Surging Airplane Demand
Garmin’s aviation division saw net sales grow 13 percent against the fourth quarter of 2020, topping $177.5 million. Year over year, sales rose 14 percent in 2021, to more than $712.5 million.
Robust airplane sales from manufacturers drove this.
“Aviation also ended the year with unusually high levels of backorders, which carried into the new year,” Pemble shared on the call. “The pandemic highlighted the unique value proposition of general aviation aircraft, and OEMs are reporting robust orders from both new and existing customers. Aftermarket demand is also strong as customers invest in new cockpit systems.”
The company singled out its G3000 integrated flight deck, which Heart Aerospace selected for the all-electric ES-19 regional airliner that is in development.
For the seventh consecutive year, Embraer (NYSE: ERJ) named the company a supplier of the year, highlighting Garmin’s contribution to various aircraft systems, from design to innovative flight decks.
Pemble pointed out that the company hopes to ride the “bell curve” of surging general aviation demand and hinted that the company might increase capacity to meet the demand.
“We’re prepared with plenty of factory capacity. We have always focused on a strong supply chain in aviation so that we can meet the needs of our customers,” Pemble said.
Looking ahead, Garmin expects 2022 revenue to increase about 10 percent to $5.5 billion and adjusted 2022 earnings of $5.90 a share. Analysts currently expect the company to generate 2022 sales of $5.33 billion and adjusted earnings of $6.27 a share.
Following the call, Garmin’s share price dipped 1.7 percent to $117.
