GPS maker Garmin Ltd. (
) on Wednesday posted worse-than-expected first quarter earnings
results, sending its shares plunging in premarket trading.
The Cayman Islands-based company reported first quarter net
income of $37.3 million, or 19 cents per share, down 23% from $48.5
million, or 24 cents per share, in the year-ago period. Excluding
one-time items, however, adjusted profit was 38 cents per
Sales fell 1% from last year, to $431.1 million.
On average, Wall Street analysts expected a higher adjusted
profit of 42 cents per share, on much higher revenue of $483.5
Still, the company said it still expects to meet its full-year
2010 earnings forecast.
Garmin shares plunged $4.43, or -11.8%, in premarket trading
The Bottom Line
We have been avoiding shares of GRMN since our early June 2008
coverage began, when the stock was trading at $51.34. The company
has a 4.00% dividend yield, based on last night's closing stock
price of $37.48. The stock has technical support in the $30 price
area. If the shares can firm up, we see overhead resistance around
the $37-$39 price levels. We would remain on the sidelines for
Garmin Ltd. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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