Based on our performance in the first half of 2018, we are updating our full year guidance. We now anticipate revenue of approximately $3.3 billion driven primarily by higher expectations for our fitness and aviation segments partially offset by slightly lower expectations for the marine segment. Our outlook for the outdoor and auto segments are unchanged. We anticipate our full year pro forma EPS will be approximately $3.30 based on gross margin of about 58.5%, operating margin of about 21.5% and a full year pro forma effective tax rate of about 17.5%.
| 2018 Guidance(1) |
2018 Revenue Guidance |
|||||||||||
| Updated | Prior | Segment | Updated | Prior | ||||||||
| Revenue | ~$3.3 B | ~$3.2 B | Aviation | ~18% | ~13% | |||||||
| Gross Margin | ~58.5% | ~58.5% | Marine | ~15% | ~18% | |||||||
| Operating Margin | ~21.5% | ~21.0% | Outdoor | ~13% | ~13% | |||||||
| Tax Rate (Pro Forma) (2) | ~17.5% | ~19.0% | Fitness | ~10% | ~0% | |||||||
| EPS (Pro Forma) (2) | ~$3.30 | ~$3.05 | Auto (1) | ~(17%) | -17% | |||||||
| (1) Consolidated and Auto segment guidance assumes the adoption of the new revenue recognition standard in 2018 and restatement of 2017 amounts. |
| (2) See attached table for reconciliation of non-GAAP measures including forward-looking pro forma tax rate and EPS |
