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• Market Wrap-Up for Nov.12 (SHW, JEF, PCP, JNJ, C, more)
• Goldman Sachs Downgrades Garmin Ltd. to “Sell” (GRMN)
• Garmin Reports Decline in Profits; Beats Analysts Estimates; Outlook Raised (GRMN)

• GRMN 50% Rate It

GPS maker Garmin Ltd. ( GRMN ) 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 share.

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 million.

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 Wednesday.

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 now.

Garmin Ltd. ( GRMN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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