Garmin Ltd. GRMN reported fourth-quarter 2020 pro-forma earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.37. Moreover, the bottom line improved 34% on a year-over-year basis.Net sales were $1.35 billion, which surpassed the Zacks Consensus Estimate of $1.17 billion. Further, the figure increased 23% from the year-ago quarter.The top-line growth was driven by strong performance by the company’s marine, outdoor and fitness segments. Moreover, increasing demand for active lifestyle products remained a major positive.However, sluggishness in its aviation segment was concerning.Nevertheless, Garmin’s strong focus on continued innovation, diversification and market expansion to explore opportunities across all business segments remains a major positive. Further, strong product lines are expected to aid its performance for the current quarter.Garmin Ltd. Price, Consensus and EPS Surprise Garmin Ltd. price-consensus-eps-surprise-chart | Garmin Ltd. QuoteSegmental DetailsFitness (34.8%): This segment generated sales of $470.8 million, which increased 26% from the year-ago quarter. This can be primarily attributed to its well-performing advanced wearables and cycling products.Outdoor (30.5% of net sales): The segment generated sales of $411.9 million for the reported quarter, improving 40% year over year. The year-over-year increase was primarily driven by robust demand for Garmin’s adventure watches.Aviation (11.6%): The segment generated sales of $157 million, declining 19% on a year-over-year basis. This was due to low contribution from ADS-B products. Also, weak shipments to OEM customers remained a headwind.Marine (12.7%): Garmin generated sales of $171.6 million from this segment, which increased 48% on a year-over-year basis. The company witnessed solid momentum across chartplotters during the reported quarter, which, in turn, drove the segment’s revenues.Auto (10.4%): This segment generated sales of $140.1 million, up 11% from the prior-year quarter. The increase was primarily driven by OEM programs and growth in consumer specialty categories.Revenues by GeographyAmericas: Garmin generated sales of $595.7 million from this region for the reported quarter, up 13% year over year.EMEA: This region generated sales of $536.8 million for the fourth quarter, up 32% on a year-over-year basis.APAC: The company generated sales of $218.9 million from this region, improving 32% from the year-ago quarter.Operating ResultsFor the fourth quarter, gross margin was 58.5%, which expanded 50 basis points (bps) from the year-ago period.The company’s operating expenses of $420 million were up 16% from the prior-year quarter. However, as a percentage of revenues, the figure contracted 190 bps year over year to 31%.Operating margin of 27.5% for the reported quarter expanded 240 bps year over year.Balance Sheet & Cash FlowAs of Dec 26, 2020, cash, cash equivalents and marketable securities came in at $1.85 billion, higher than $1.65 billion on Sep 26, 2020.For the fourth quarter, inventories were $762.1 million compared with $821.4 million in the third quarter. We note that the company had no long-term debt for the reported quarter.Further, it generated $435.8 million of cash from operations during the reported quarter compared with $274.3 million in the previous quarter.Further, the company generated free cash flow of $387.5 million.Further, Garmin paid out dividends worth $117 million to shareholders in the fourth quarter.2021 GuidanceThe company projects net sales of $4.6 billion, which is expected to be driven by growth in all segments. Year-over-year growth in fitness, outdoor, aviation, marine and auto is projected at 10%, 10%, 5%, 15% and 5%, respectively.The Zacks Consensus Estimate for 2021 net sales is pegged at $4 billion.Further, Garmin expects gross margin and operating margin of 59.2% and 23.5%, respectively.Also, it projects pro-forma earnings of $5.15 per share. The consensus mark for 2021 earnings is pegged at $4.78 per share.Zacks Rank & Other Key PicksGarmin currently has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Semtech Corporation SMTC, KLA Corporation KLAC and Flex Ltd. FLEX, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Long-term earnings growth for Semtech, KLA Corp., and Flex is currently projected at 12.5%, 11.6%, and 13.3%, respectively.Legal Marijuana: An Investor’s DreamImagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027. Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC): Free Stock Analysis Report Semtech Corporation (SMTC): Free Stock Analysis Report Garmin Ltd. (GRMN): Free Stock Analysis Report Flex Ltd. (FLEX): Get Free Report To read this article on Zacks.com click here. Zacks Investment Research