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Yahoo
an hour ago
- Business
- Yahoo
Garmin Ltd (GRMN) Q2 2025 Earnings Call Highlights: Record Revenue and Strategic Acquisitions ...
Consolidated Revenue: Increased 20% to over $1.8 billion, a new second quarter record. Gross Margin: Expanded to 58.8%. Operating Margin: Expanded to 26%. Operating Income: Reached $472 million, up 38% year-over-year. Pro Forma EPS: $2.17, up 37% year-over-year. Fitness Segment Revenue: Increased 41% to $605 million. Outdoor Segment Revenue: Increased 11% to $490 million. Aviation Segment Revenue: Increased 14% to $249 million. Marine Segment Revenue: Increased 10% to $299 million. Auto OEM Segment Revenue: Increased 16% to $170 million. Free Cash Flow: $127 million, a $91 million decrease from the prior year quarter. Cash and Marketable Securities: Approximately $3.9 billion at quarter end. Inventory: Increased to approximately $1.8 billion. Capital Expenditures: Approximately $46 million for the second quarter. Dividends Paid: Approximately $173 million. Share Repurchase: $67 million of company stock purchased. Effective Tax Rate: 16.5%, down from 17.9% in the prior year quarter. Full Year Revenue Guidance: Updated to approximately $7.1 billion. Full Year Pro Forma EPS Guidance: Updated to approximately $8 per share. Warning! GuruFocus has detected 7 Warning Sign with GRMN. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Garmin Ltd (NYSE:GRMN) reported a 20% increase in consolidated revenue, reaching a new second quarter record of over $1.8 billion. The company experienced double-digit sales growth across all business segments, with the fitness segment leading at 41% growth. Gross and operating margins expanded to 58.8% and 26%, respectively, resulting in a record second quarter operating income of $472 million, up 38% year-over-year. Garmin Ltd (NYSE:GRMN) announced the acquisition of MYLAPS, which is expected to enhance their offerings in timing and performance analysis for athletic events. The company raised its full-year revenue guidance to approximately $7.1 billion and pro-forma EPS to $8 per share, reflecting strong performance and demand for its products. Negative Points Operating expenses increased by 14%, driven by higher personnel-related costs in research and development and SG&A. Free cash flow decreased by $91 million compared to the prior year quarter, primarily due to an increase in inventory. The auto OEM segment reported an operating loss of $10 million, despite revenue growth. The company faces potential unfavorable impacts from foreign currency fluctuations, particularly the strengthening of the Taiwan dollar. Despite strong revenue growth, the implied second half growth for operating profit dollars is expected to be flat, indicating potential challenges in maintaining leverage. Q & A Highlights Q: Can you explain the strong performance in the fitness segment and any potential influences from channel fill or demand pull forward? A: Clifton Pemble, President and CEO, stated that while there is always some channel fill impact with new product launches, it was not a significant factor in driving outperformance. There is no evidence of demand pull forward, as retailers are cautious with inventory and have credit limits. The channel is well managed, and there are no signs of stockpiling. Q: Regarding the full-year outlook, why is operating profit expected to be flat despite revenue and gross profit growth? A: Douglas Boessen, CFO, explained that operating expenses are expected to increase due to headcount, infrastructure growth, foreign currency impacts, the MYLAPS acquisition, increased performance-based compensation, and co-op advertising. Tariff estimates are lower, but foreign currency impacts will offset this in gross margins. Q: Is Garmin entering a new higher revenue growth paradigm, especially with auto OEM as a tailwind? A: Clifton Pemble noted that Garmin has evolved significantly over the past decade, particularly in the wearable market. The company sees opportunities across all segments and aims to create unique products that lead in existing and new categories. Garmin is optimistic about future growth and continues to invest in innovation. Q: What opportunities does Garmin see with the MYLAPS acquisition? A: Clifton Pemble highlighted that MYLAPS specializes in timing for competitive events, aligning with Garmin's interests in running, triathlon, and cycling. The acquisition allows Garmin to integrate training and race day experiences, providing a comprehensive solution for users. Q: How is Garmin addressing the potential of smart wearables in health management? A: Clifton Pemble expressed excitement about the role of wearables in health management. Garmin offers a diverse product line with advanced sensor measurements and health metrics, providing significant opportunities in helping users manage their health effectively. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 hours ago
- Business
- Yahoo
Nvidia Price Target Raised to $200 by Morgan Stanley
Morgan Stanley raised its Nvidia (NVDA, Financials) price target to $200 from $170, citing sustained demand for its Blackwell AI chips. The firm sees supply easing in the second half, which could boost earnings momentum. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Nvidia's revenue grew 86% in the past year with a 70% gross margin. The bank now values the stock at 33 times its 2026 mid-year EPS forecast of $6.02. Shares closed Monday at $175.51, near their $179.38 high. Nvidia remains Morgan Stanley's top semiconductor pick. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 hours ago
- Automotive
- Yahoo
Garmin announces second quarter 2025 results
Company reports record second quarter operating results and raises full year guidance SCHAFFHAUSEN, Switzerland, July 30, 2025 /PRNewswire/ -- Garmin® Ltd. (NYSE: GRMN), today announced results for the second quarter ended June 28, 2025. Highlights for second quarter 2025 include: Record consolidated revenue of $1.81 billion, a 20% increase compared to the prior year quarter Gross margin expanded to 58.8% compared to 57.3% in the prior year quarter Operating margin expanded to 26.0% from 22.7% in the prior year quarter Record operating income of $472 million, a 38% increase compared to the prior year quarter GAAP EPS of $2.07 and pro forma EPS(1) of $2.17, representing 37% growth in pro forma EPS over the prior year quarter Launched the next-generation Forerunner® 570 and Forerunner 970, adding new training tools and recovery insights Launched SmartCharts, the first dynamic, data-driven aviation charts tailored to simplify terminal procedures for pilots Announced our revolutionary Autoland has been certified for the Cirrus SR Series G7+, the first piston-powered aircraft with Garmin's autonomous emergency landing system Recently completed the strategic acquisition of MYLAPS, a global market leader in sports timing and performance analysis (In thousands, except per share information)13-Weeks Ended 26-Weeks EndedJune 28, June 29, YoY June 28, June 29, YoY2025 2024 Change 2025 2024 ChangeNet sales$ 1,814,564 $ 1,506,671 20 % $ 3,349,663 $ 2,888,320 16 % Fitness 605,425428,404 41 %990,147771,296 28 % Outdoor 490,357439,872 11 %928,853806,065 15 % Aviation 249,366218,253 14 %472,481435,108 9 % Marine 299,262272,953 10 %618,699599,689 3 % Auto OEM 170,154147,189 16 %339,483276,162 23 % Gross profit 1,067,012862,89124 % 1,951,5571,665,03017 % Gross margin % 58.8 % 57.3 % 58.3 % 57.6 %Operating Income 472,295342,02738 % 805,119640,43726 % Operating income % 26.0 % 22.7 % 24.0 % 22.2 %GAAP diluted EPS$ 2.07 $ 1.5633 %$ 3.79 $ 2.9927 % Pro forma diluted EPS(1)$ 2.17 $ 1.5837 %$ 3.78 $ 3.0026 %(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma diluted EPSExecutive Overview from Cliff Pemble, President and Chief Executive Officer: "We delivered another quarter of outstanding financial results with double-digit growth in every segment, driven by our strong lineup of innovative and highly differentiated products that customers desire. We are very pleased with our results so far in 2025, which have exceeded our expectations and give us confidence to raise our full year guidance." -Cliff Pemble, President and Chief Executive Officer of Garmin Ltd. Fitness: Revenue from the fitness segment increased 41% in the second quarter with growth led by strong demand for advanced wearables. Gross and operating margins were 60% and 33%, respectively, resulting in $198 million of operating income. During the quarter, we launched the Forerunner 570 and Forerunner 970 with advanced new training features and personalized training plans from Garmin Coach for running and triathlons. Also during the quarter, we launched the new Venu® X1 with an ultrathin case and a class-leading 2-inch display resulting in a sleek and lightweight design that is easy to read and packed full of our most popular features. We also launched the Index™ Sleep Monitor, our first smart sleep band, for a more comprehensive view of users' overall fitness and recovery. Outdoor: Revenue from the outdoor segment increased 11% in the second quarter primarily due to growth in adventure watches. Gross and operating margins were 66% and 32%, respectively, resulting in $158 million of operating income. During the quarter, we launched the Instinct® 3 Tactical Edition, adding a bright AMOLED display and metal-reinforced bezel, a built-in LED flashlight, and a rucking activity. Also during the quarter, we launched Tread® 2, our latest all-terrain navigator, offering larger touchscreens and additional mapping options to enrich off-road adventures. Aviation: Revenue from the aviation segment increased 14% in the second quarter with growth contributions from both the OEM and aftermarket product categories. Gross and operating margins were 74% and 25%, respectively, resulting in $63 million of operating income. During the quarter, we launched SmartCharts, the first dynamic, data-driven charts tailored in real-time for the specific aircraft and approach being flown. Also during the quarter, we introduced the G5000® PRIME integrated flight deck, bringing our latest industry-leading cockpit innovations to Part 25 transport aircraft. We also announced that the Garmin Autoland system was certified for the Cirrus SR G7+ Series, becoming the first piston-powered aircraft equipped with this award-winning system. For the tenth consecutive year, we were recognized by Embraer as a Best Supplier, most recently in the Electrical and Electronic Systems category. Marine: Revenue from the marine segment increased 10% in the second quarter with growth across multiple categories led by chartplotters. Gross and operating margins were 55% and 21%, respectively, resulting in $63 million of operating income. During the quarter, we launched the GPSMAP® 15x3 chartplotters, with a premium ultrawide display. Also, we launched quatix® 8, our most advanced purpose-built smartwatch for mariners. Auto OEM: Revenue from the auto OEM segment increased 16% during the second quarter primarily driven by growth in domain controllers. Gross margin was 17% and we recorded an operating loss of $10 million in the quarter. We recently shipped the one millionth BMW domain controller out of our U.S. manufacturing facility, demonstrating our capability as a respected tier 1 supplier to the North American automotive market. Additional Financial Information: Total operating expenses in the second quarter were $595 million, a 14% increase over the prior year. Research and development and selling, general and administrative expenses increased 14% and 15%, respectively, driven primarily by personnel related costs. The effective tax rate in the second quarter was 16.5% compared to the effective tax rate of 17.9% in the prior year quarter. The decrease in the current quarter is primarily due to an increase in uncertain tax position reserve releases as compared to the same period last year. In the second quarter of 2025, we generated operating cash flows of $173 million and free cash flow(1) of $127 million. We paid a quarterly dividend of approximately $173 million and repurchased $67 million of the Company's shares within the quarter, leaving approximately $143 million remaining as of June 28, 2025 in the $300 million share repurchase program authorized through December 2026. We ended the quarter with cash and marketable securities of approximately $3.9 billion. (1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including pro forma effective tax rate and free cash flow. 2025 Fiscal Year Guidance: Based on our performance in the first half of 2025, we are raising our full year 2025 guidance. We now anticipate revenue of approximately $7.1 billion and pro forma EPS of $8.00 based on gross margin of 58.5%, operating margin of 24.8% and a full year tax rate of 17.5% (see attached discussion on Forward-looking Financial Measures). Dividend Recommendation: The Board of Directors has established September 26, 2025, as the payment date for the next dividend installment of $0.90 per share with a record date of September 12, 2025. At the 2025 annual shareholders' meeting, Garmin shareholders, in accordance with Swiss corporate law, approved a cash dividend in the total amount of $3.60 per share, payable in four equal installments on dates to be determined by the Board in its discretion. The first payment was made on June 27, 2025. The Board currently anticipates the scheduling of the remaining quarterly dividend installments as follows: Dividend DateRecord Date$s per share December 26, 2025December 12, 2025$0.90 March 27, 2026March 13, 2026$0.90 Webcast Information/Forward-Looking Statements: The information for Garmin Ltd.'s earnings call is as follows: When: Wednesday, July 30, 2025, 10:30 a.m. Eastern Where: Join a live stream of the call at the following linkhttps:// An archive of the live webcast will be available until July 29, 2026 on the Garmin website at To access the replay, click on the Investors link and click over to the Events page. This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as "anticipates," "would," "may," "expects," "estimates," "plans," "intends," "projects," and other words or phrases with similar meanings. Any statements regarding the Company's expected fiscal 2025 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company's expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, global trade related impacts, potential future acquisitions, share repurchase programs, currency movements, expenses, pricing, new product launches, market reach, statements relating to possible future dividends, and the Company's plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 28, 2024 and the Quarterly Report on Form 10-Q for the quarter ended June 28, 2025 filed by Garmin with the Securities and Exchange Commission (Commission file number 001-41118). A copy of Garmin's 2024 Form 10-K and the Q2 2025 Form 10-Q can be downloaded from All information provided in this release and in the attachments is as of June 28, 2025. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law. This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments. Garmin, the Garmin logo, the Garmin delta, Forerunner, G5000, GPSMAP, Instinct, quatix, Tread, and venu are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. Index is a trademark of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved. Investor Relations Contact: Media Relations Contact: Teri Seck Krista Klaus 913/397-8200 913/397-8200 Garmin Ltd. and SubsidiariesCondensed Consolidated Statements of Income (Unaudited)(In thousands, except per share information) 13-Weeks Ended 26-Weeks EndedJune 28, June 29, June 28, June 29,2025 2024 2025 2024Net sales$ 1,814,564 $ 1,506,671 $ 3,349,663 $ 2,888,320Cost of goods sold 747,552643,7801,398,1061,223,290Gross profit 1,067,012862,8911,951,5571,665,030 Research and development expense 276,663243,151544,783485,686Selling, general and administrative expenses 318,054277,713601,655538,907Total operating expense 594,717520,8641,146,4381,024,593 Operating income 472,295342,027805,119640,437 Other income (expense): Interest income 31,72429,28662,23154,313Foreign currency (losses) gains (23,512)(4,828)1,248(2,547)Other (expense) income (256)(513)730809Total other income (expense) 7,95623,94564,20952,575 Income before income taxes 480,251365,972869,328693,012Income tax provision 79,42965,342135,737116,421Net income$ 400,822 $ 300,630 $ 733,591 $ 576,591 Net income per share: Basic$ 2.08 $ 1.57 $ 3.81 $ 3.00Diluted$ 2.07 $ 1.56 $ 3.79 $ 2.99 Weighted average common shares outstanding: Basic 192,523192,074192,534191,982Diluted 193,416192,899193,557192,808 Garmin Ltd. and SubsidiariesCondensed Consolidated Balance Sheets (Unaudited)(In thousands) June 28, 2025 December 28, 2024Assets Current assets: Cash and cash equivalents$ 2,072,208 $ 2,079,468Marketable securities 515,038421,270Accounts receivable, net 1,010,578983,404Inventories 1,788,0201,473,978Deferred costs 18,51824,040Prepaid expenses and other current assets 415,069353,993Total current assets 5,819,4315,336,153 Property and equipment, net 1,290,7141,236,884Operating lease right-of-use assets 179,299164,656Noncurrent marketable securities 1,285,8871,198,331Deferred income tax assets 852,551822,521Noncurrent deferred costs 5,2226,898Goodwill 640,554603,947Other intangible assets, net 147,285154,163Other noncurrent assets 103,133106,974Total assets$ 10,324,076 $ 9,630,527 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$ 397,303 $ 359,365Salaries and benefits payable 193,598210,879Accrued warranty costs 71,19762,473Accrued sales program costs 104,310108,492Other accrued expenses 254,359216,721Deferred revenue 108,444110,997Income taxes payable 282,988294,582Dividend payable 519,863144,349Total current liabilities 1,932,0621,507,858 Deferred income tax liabilities 89,194103,274Noncurrent income taxes payable 3,7047,014Noncurrent deferred revenue 24,55328,321Noncurrent operating lease liabilities 148,608134,886Other noncurrent liabilities 844776 Stockholders' equity: Common shares (194,901 and 194,901 shares authorized and issued; 192,542 and 192,468 shares outstanding) 19,49019,490Additional paid-in capital 2,317,2942,247,484Treasury shares (2,359 and 2,433 shares) (356,358)(270,521)Retained earnings ... 6,039,5125,999,183Accumulated other comprehensive income (loss) 105,173(147,238)Total stockholders' equity 8,125,1117,848,398Total liabilities and stockholders' equity$ 10,324,076 $ 9,630,527 Garmin Ltd. and SubsidiariesCondensed Consolidated Statements of Cash Flows (Unaudited)(In thousands) 26-Weeks EndedJune 28, 2025 June 29, 2024Operating Activities: Net income$ 733,591 $ 576,591Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 75,98067,890Amortization 17,42321,047Loss on sale or disposal of property and equipment 350128Unrealized foreign currency (gains) losses (16,566)3,165Deferred income taxes (49,754)(35,778)Stock compensation expense 82,27965,983Realized loss on marketable securities 70629Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net of allowance for doubtful accounts 17,902(8,600)Inventories (206,276)(11,368)Other current and noncurrent assets (37,092)(39,759)Accounts payable (2,591)92,065Other current and noncurrent liabilities 2,408(62,099)Deferred revenue (6,843)667Deferred costs 7,262(2,516)Income taxes (24,820)23,181Net cash provided by operating activities 593,959690,626 Investing activities: Purchases of property and equipment (85,738)(70,325)Purchase of marketable securities (465,372)(281,297)Redemption of marketable securities 306,469203,775Net (payments for) cash from acquisitions (1,973)5,011Other investing activities, net 503(321)Net cash used in investing activities (246,111)(143,157) Financing activities: Dividends (317,748)(284,246)Proceeds from issuance of treasury shares related to equity awards 29,06524,530Purchase of treasury shares related to equity awards (33,431)(16,264)Purchase of treasury shares under share repurchase plan (93,632)(9,713)Net cash used in financing activities (415,746)(285,693) Effect of exchange rate changes on cash and cash equivalents 60,650(17,761) Net (decrease) increase in cash, cash equivalents, and restricted cash (7,248)244,015Cash, cash equivalents, and restricted cash at beginning of period 2,080,1541,694,156Cash, cash equivalents, and restricted cash at end of period$ 2,072,906 $ 1,938,171 Garmin Ltd. and Subsidiaries Net Sales, Gross Profit and Operating Income by Segment (Unaudited (In thousands) Fitness Outdoor Aviation Marine Auto OEM Total13-Weeks Ended June 28, 2025Net sales$ 605,425 $ 490,357 $ 249,366 $ 299,262 $ 170,154 $ 1,814,564Gross profit 364,670324,429185,472164,33828,1031,067,012Operating income (loss) 197,630157,88163,38362,921(9,520)472,295 13-Weeks Ended June 29, 2024Net sales$ 428,404 $ 439,872 $ 218,253 $ 272,953 $ 147,189 $ 1,506,671Gross profit 245,248284,214161,366147,78724,276862,891Operating income (loss) 107,610135,59250,48559,892(11,552)342,027 26-Weeks Ended June 28, 2025Net sales$ 990,147 $ 928,853 $ 472,481 $ 618,699 $ 339,483 $ 3,349,663Gross profit 584,813606,964353,374348,27158,1351,951,557Operating income (loss) 275,344286,668111,739149,785(18,417)805,119 26-Weeks Ended June 29, 2024Net sales$ 771,296 $ 806,065 $ 435,108 $ 599,689 $ 276,162 $ 2,888,320Gross profit 440,050526,953323,992327,03946,9961,665,030Operating income (loss) 175,743242,543102,619147,583(28,051)640,437 Garmin Ltd. and SubsidiariesNet Sales by Geography (Unaudited)(In thousands) 13-Weeks Ended 26-Weeks EndedJune 28, June 29, YoY June 28, June 29, YoY2025 2024 Change 2025 2024 ChangeNet sales$ 1,814,564 $ 1,506,671 20 % $ 3,349,663 $ 2,888,320 16 %Americas 878,014740,577 19 %1,623,7471,456,694 11 %EMEA 677,402542,016 25 %1,246,3551,005,399 24 %APAC 259,148224,078 16 %479,561426,227 13 % Americas - North America & South America; EMEA - Europe, Middle East & Africa; APAC - Asia Pacific & Australian ContinentNon-GAAP Financial Information To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma effective tax rate, pro forma net income (earnings) per share and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below. The tables below provide reconciliations between the GAAP and non-GAAP measures. Pro forma effective tax rate The Company's income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first half 2025 and 2024 there were no such discrete tax items identified. Pro forma net income (earnings) per share Management believes net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure to permit a consistent comparison of the Company's performance between periods. (In thousands, except per share information)13-Weeks Ended 26-Weeks EndedJune 28, June 29, June 28, June 29,2025 2024 2025 2024GAAP net income$ 400,822 $ 300,630 $ 733,591 $ 576,591Foreign currency gains / losses(1) 23,5124,828(1,248)2,547Tax effect of foreign currency gains / losses(2) (3,889)(862)195(428)Pro forma net income$ 420,445 $ 304,596 $ 732,538 $ 578,710 GAAP net income per share: Basic$ 2.08 $ 1.57 $ 3.81 $ 3.00Diluted$ 2.07 $ 1.56 $ 3.79 $ 2.99 Pro forma net income per share: Basic$ 2.18 $ 1.59 $ 3.80 $ 3.01Diluted$ 2.17 $ 1.58 $ 3.78 $ 3.00 Weighted average common shares outstanding: Basic 192,523192,074192,534191,982Diluted 193,416192,899193,557192,808(1) Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar and the related exchange rate impact on the significant cash, receivables, and payables held in a currency other than the functional currency at a given legal entity. However, there is minimal cash impact from such foreign currency gains and losses. (2) The tax effect of foreign currency gains was calculated using the effective tax rates of 16.5% and 15.6% for the 13-weeks and 26-weeks ended June 28, 2025 and 17.9% and 16.8% for the 13-weeks and 26-weeks ended June 29, 2024. Free cash flow Management believes free cash flow is an important liquidity measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property and equipment. Management believes excluding purchases of property and equipment provides a better understanding of the underlying trends in the Company's operations and allows more accurate comparisons of the Company's results between periods. This metric may also be useful to investors but should not be considered in isolation as it is not a measure of cash flow available for discretionary expenditures. The most comparable GAAP measure is net cash provided by operating activities. (In thousands)13-Weeks Ended 26-Weeks EndedJune 28, June 29, June 28, June 29,2025 2024 2025 2024Net cash provided by operating activities$ 173,171 $ 255,321 $ 593,959 $ 690,626Less: purchases of property and equipment (45,677)(37,157)(85,738)(70,325)Free cash flow$ 127,494 $ 218,164 $ 508,221 $ 620,301Forward-looking Financial Measures The forward-looking financial measures in our 2025 guidance include certain economic assumptions such as foreign currency exchange rates and tariffs which are fluid and can rapidly change favorably or unfavorably. The forward-looking financial measures in our 2025 guidance provided above do not consider the potential future net effect of foreign currency exchange gains and losses, certain discrete tax items and any other impacts that may be identified as pro forma adjustments in calculating the non-GAAP measures described above. The estimated impact of foreign currency gains and losses cannot be reasonably estimated on a forward-looking basis due to the high variability and low visibility with respect to non-operating foreign currency exchange gains and losses and the related tax effects of such gains and losses. The impact on diluted net income per share of foreign currency gains and losses, net of tax effects, was $0.01 per share for the 26-week period ended June 28, 2025. At this time, management is unable to determine whether or not significant discrete tax items will occur in fiscal 2025, estimate the impact of any such items, or anticipate the impact of any other events that may be considered in the calculation of non-GAAP financial measures. View original content to download multimedia: SOURCE Garmin Ltd. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Kforce Inc (KFRC) Q2 2025 Earnings Call Highlights: Navigating Revenue Decline with Strategic ...
Total Revenue: $334.3 million, a decline of 6.2% year over year. Earnings Per Share (EPS): $0.59, consistent with expectations. Gross Margin: Increased 40 basis points sequentially to 27.1%. Flex Revenue: Sequential growth in Technology and Finance and Accounting businesses. Direct Hire Revenue: Challenged and below expectations, representing approximately 2% of overall revenues. Average Bill Rate in Technology: $90, stable over the past three years. Average Bill Rate in Finance and Accounting: Approximately $54 per hour, improved sequentially and year over year. SG&A Expenses: 22.2% of revenue, increased 40 basis points year over year. Operating Margin: 4.5%. Effective Tax Rate: 24.6% for the second quarter. Capital Returned to Shareholders: $17.4 million through dividends and share repurchases. Operating Cash Flows: $18.4 million. Return on Equity: Exceeds 30%. Net Debt Levels: Approximately $67.5 million. Q3 Revenue Guidance: Expected to be in the range of $324 million to $332 million. Q3 EPS Guidance: Expected to be between $0.53 and $0.61. Warning! GuruFocus has detected 3 Warning Signs with KFRC. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Kforce Inc (NYSE:KFRC) reported sequential flex revenue growth in both technology and finance and accounting businesses, indicating resilience in a challenging macroeconomic environment. The company is well-positioned to capitalize on the increasing demand for AI foundational readiness work, leveraging its expertise in technology and access to evolving skill sets. Kforce Inc (NYSE:KFRC) has successfully shifted towards consulting-oriented solutions, which have shown strong demand and contributed to stable margins and average bill rates. The company's development center in Pune enhances its ability to provide cost-effective solutions through a blended onshore, nearshore, and offshore model. Kforce Inc (NYSE:KFRC) has a strong client base, predominantly consisting of large, market-leading companies, which supports its long-term above-market performance. Negative Points Total revenues declined 6.2% year over year, with direct hire revenues particularly challenged due to macroeconomic conditions. The company experienced some unanticipated project ends, leading to a modest sequential decline expected in the technology business for Q3. Flex revenues in the finance and accounting business, although showing sequential growth, declined 16.8% year over year. Overall gross margins declined 70 basis points year over year due to higher healthcare costs and a lower mix of direct hire revenues. SG&A expenses as a percentage of revenue increased 40 basis points year over year, driven by deleverage from lower revenue levels and higher healthcare costs. Q & A Highlights Q: Can you discuss the levels of discussion around AI projects and when you expect demand to increase significantly? A: Joseph Liberatore, President and CEO, explained that most organizations are in the preparation phase for AI, focusing on foundational readiness in governance, data, cloud, and security. Only about 10% of organizations are fully equipped to leverage AI, mostly in the technology sector. There is significant opportunity in data organization and digital modernization, which will prepare companies to leverage AI in the future. Q: What is causing the early project ends in Tech Flex, and do you expect these projects to resume? A: David Kelly, Chief Operating Officer, noted that some projects ended unexpectedly due to clients reallocating investments to other technology projects. This was not a reduction in technology spend but a shift in focus. Despite these ends, the overall sentiment is stability, with consistent new assignments and project wins. Q: How would you characterize the current pipeline, and are companies holding off on legacy projects due to AI uncertainties? A: David Kelly stated that the pipeline remains strong, particularly in data and digital areas. Companies are not holding off on legacy projects due to AI but are looking for immediate returns amidst economic uncertainty. AI preparation involves years of work, and companies cannot afford to wait. Q: What has driven the sequential growth in the Finance and Accounting (FA) business, and is the repositioning complete? A: David Kelly highlighted the team's focus on higher skill sets and an executable model, moving away from administrative FA work. The average bill rate is now in the mid-50s, aligning with client needs. The repositioning appears complete, with recent sequential growth indicating stabilization. Q: Can you provide more details on the impact of nearshore and offshore dynamics on margins and hourly rates? A: David Kelly mentioned that while the nearshore and offshore presence is slightly accretive to margins, it is not yet significant enough to impact overall bill rates or margins. The focus is on supporting U.S. revenue, and the consulting-oriented engagements contribute to stability in bill rates and margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Kforce Inc (KFRC) Q2 2025 Earnings Call Highlights: Navigating Revenue Decline with Strategic ...
Total Revenue: $334.3 million, a decline of 6.2% year over year. Earnings Per Share (EPS): $0.59, consistent with expectations. Gross Margin: Increased 40 basis points sequentially to 27.1%. Flex Revenue: Sequential growth in Technology and Finance and Accounting businesses. Direct Hire Revenue: Challenged and below expectations, representing approximately 2% of overall revenues. Average Bill Rate in Technology: $90, stable over the past three years. Average Bill Rate in Finance and Accounting: Approximately $54 per hour, improved sequentially and year over year. SG&A Expenses: 22.2% of revenue, increased 40 basis points year over year. Operating Margin: 4.5%. Effective Tax Rate: 24.6% for the second quarter. Capital Returned to Shareholders: $17.4 million through dividends and share repurchases. Operating Cash Flows: $18.4 million. Return on Equity: Exceeds 30%. Net Debt Levels: Approximately $67.5 million. Q3 Revenue Guidance: Expected to be in the range of $324 million to $332 million. Q3 EPS Guidance: Expected to be between $0.53 and $0.61. Warning! GuruFocus has detected 3 Warning Signs with KFRC. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Kforce Inc (NYSE:KFRC) reported sequential flex revenue growth in both technology and finance and accounting businesses, indicating resilience in a challenging macroeconomic environment. The company is well-positioned to capitalize on the increasing demand for AI foundational readiness work, leveraging its expertise in technology and access to evolving skill sets. Kforce Inc (NYSE:KFRC) has successfully shifted towards consulting-oriented solutions, which have shown strong demand and contributed to stable margins and average bill rates. The company's development center in Pune enhances its ability to provide cost-effective solutions through a blended onshore, nearshore, and offshore model. Kforce Inc (NYSE:KFRC) has a strong client base, predominantly consisting of large, market-leading companies, which supports its long-term above-market performance. Negative Points Total revenues declined 6.2% year over year, with direct hire revenues particularly challenged due to macroeconomic conditions. The company experienced some unanticipated project ends, leading to a modest sequential decline expected in the technology business for Q3. Flex revenues in the finance and accounting business, although showing sequential growth, declined 16.8% year over year. Overall gross margins declined 70 basis points year over year due to higher healthcare costs and a lower mix of direct hire revenues. SG&A expenses as a percentage of revenue increased 40 basis points year over year, driven by deleverage from lower revenue levels and higher healthcare costs. Q & A Highlights Q: Can you discuss the levels of discussion around AI projects and when you expect demand to increase significantly? A: Joseph Liberatore, President and CEO, explained that most organizations are in the preparation phase for AI, focusing on foundational readiness in governance, data, cloud, and security. Only about 10% of organizations are fully equipped to leverage AI, mostly in the technology sector. There is significant opportunity in data organization and digital modernization, which will prepare companies to leverage AI in the future. Q: What is causing the early project ends in Tech Flex, and do you expect these projects to resume? A: David Kelly, Chief Operating Officer, noted that some projects ended unexpectedly due to clients reallocating investments to other technology projects. This was not a reduction in technology spend but a shift in focus. Despite these ends, the overall sentiment is stability, with consistent new assignments and project wins. Q: How would you characterize the current pipeline, and are companies holding off on legacy projects due to AI uncertainties? A: David Kelly stated that the pipeline remains strong, particularly in data and digital areas. Companies are not holding off on legacy projects due to AI but are looking for immediate returns amidst economic uncertainty. AI preparation involves years of work, and companies cannot afford to wait. Q: What has driven the sequential growth in the Finance and Accounting (FA) business, and is the repositioning complete? A: David Kelly highlighted the team's focus on higher skill sets and an executable model, moving away from administrative FA work. The average bill rate is now in the mid-50s, aligning with client needs. The repositioning appears complete, with recent sequential growth indicating stabilization. Q: Can you provide more details on the impact of nearshore and offshore dynamics on margins and hourly rates? A: David Kelly mentioned that while the nearshore and offshore presence is slightly accretive to margins, it is not yet significant enough to impact overall bill rates or margins. The focus is on supporting U.S. revenue, and the consulting-oriented engagements contribute to stability in bill rates and margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
