Our consolidated revenue for the third quarter reached a record $1.59 billion, representing a 24% increase year-over-year. This growth was driven by strong performance across all our business segments, including Fitness, Outdoor, Marine, Aviation, and Auto OEM. Our gross margin expanded to 60%, a 300 basis point improvement from the previous year, and operating income surged by 62%.
We are particularly pleased with the growth in our Fitness segment, which saw a 31% increase in revenue, as well as the strong performance in Outdoor (21%) and Marine (22%). Our wearables continue to gain market share, with Garmin becoming the number two brand in Europe and number three globally.
Looking ahead, we have updated our full-year guidance, expecting revenue to reach approximately $6.12 billion and pro forma EPS to be $6.85. While we are monitoring the auto OEM segment for potential impacts, we remain confident in our overall business trajectory and market demand for our innovative products.
Despite some headwinds, such as an increase in operating expenses and a decrease in free cash flow, we are optimistic about the holiday season and beyond. Our strong balance sheet, with $3.5 billion in cash and marketable securities, positions us well for continued success.
We thank our investors and customers for their continued support and look forward to delivering on our strategic priorities in the coming quarters. Thank you. Operating income increased 31% year-over-year, and operating margin expanded 210 basis points to 14%, reflecting both higher gross margin and favorable operating leverage in the segment. During the quarter, we announced the launch of the GPSMAP 8600 series chartplotters and fishfinders, featuring a full HD in-plane switching touchscreen display and support for advanced sonar technologies. We also announced the acquisition of Navionics, a leading provider of electronic navigation charts and mobile applications for boating. This acquisition further strengthens our position in the marine market and enhances our ability to provide innovative solutions to our customers. Given the strong performance of the Marine segment in the third quarter, we are raising our 2024 revenue growth estimate to 12%. Finally, moving to Auto, revenue increased 25% to $186 million, with growth driven by both OEM and aftermarket product categories. Gross margin was 49%, a 230 basis point improvement over the prior year quarter, driven by lower product costs. Operating income increased 29% year-over-year, and operating margin expanded 90 basis points to 18%, reflecting both higher gross margin and favorable operating leverage in the segment. During the quarter, we announced the launch of the Garmin DriveSmart 97, a high-resolution GPS navigator with a large 9-inch edge-to-edge display, voice control, and built-in Amazon Alexa. We also announced the expansion of our partnership with Ford (NYSE: F) to provide enhanced navigation and infotainment solutions for select vehicles. The Auto segment has performed well so far this year, and we are maintaining our estimate of 10% revenue growth for the full year 2024. In conclusion, we are pleased with our strong performance in the third quarter across all business segments. Our results reflect the continued strength and diversification of our business, as well as the innovative products and execution by our global team. We are confident in our ability to deliver long-term sustainable growth and create value for our customers, employees, and shareholders. Thank you for your continued support and interest in Garmin. I will now turn the call over to Doug to discuss our financial results and outlook in greater detail.” And as we continue to innovate and launch new products, we see opportunities for both growth in the installed base and also in refresh cycles as customers upgrade to newer models. Our recent launches in wearables have been well-received, and we’re excited about the future opportunities in this space. We are seeing strong demand for our new dash cams, and we believe there is significant growth potential in this market as more consumers see the value and importance of having a dash cam in their vehicles. We are excited about the reception to our new products and look forward to continued success in this category. Thank you for participating in today’s earnings call. We appreciate your questions and interest in our company. If you have any further inquiries, please feel free to reach out to our Investor Relations team. Thank you, and have a great day.
Teri Seck: Gracias a todos por unirse a la llamada. Doug y yo estamos disponibles para devolver las llamadas y esperamos que tengan un excelente resto del día. Adiós.
Operador: Esto concluye la conferencia telefónica de hoy. Gracias por su participación. Pueden desconectarse ahora.
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