Garmin Ltd. (NASDAQ: GRMN) posted first quarter earnings that were off the mark. The GPS leader posted a profit gain of 6% to $147.8 million, or $0.69 EPS, on revenues of $663.8 million. First Call had estimates at $0.75 EPS on $705.1 million.
The company generated $166 million in free cash flow during Q1-2008, and it ended with cash
and marketable securities balance of $1.2 billion. Overall gross margins remained stronger than expected as its automobile margins remained flat, marine gross margin rose by 9 points and outdoor/fitness and aviation remained stable.
This note from the release here shows a cautious company: While we are pleased with our strong performance in the first quarter, it is important to note that the global economic slowdown has impacted companies across the board.
Frankly, non of this should be a shock at all, at least not if there is anything similar to an efficient market theory where information manages to get priced in. What is interesting is that estimates from Wall Street analysts haven’t really come in that much, despite different waves of data signaling slower sales and despite a near-50% share price drop since the last few days of 2007.
Shares closed at $46.44 yesterday, and shares are down over 5.5% at $43.84 in pre-market trading. The 52-week trading range is $42.01 to $125.68.
Jon C. Ogg
April 30, 2008
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
