GPS navigation maker Garmin Ltd. (
) on Wednesday said its second quarter profit fell 17% from last
year, hurt by one-time items, and cut its full-year revenue
forecast amid currency exchange concerns.
The Cayman Islands-based company reported second quarter net
income of $134.8 million, or 67 cents per share, compared with
$161.9 million, or 81 cents per share, in the year-ago period.
Excluding one-time items, adjusted profit was 85 cents per
Revenue rose 9% from last year, to $728.8 million.
On average, Wall Street analysts expected a smaller adjusted
profit of 73 cents per share, on much lower revenue of $676.9
Looking ahead, the company cut its full-year revenue forecast to
a range of $2.8 billion to $3 billion, down from a prior outlook of
$2.9 billion to $3.1 billion. Analysts currently expect $2.88
billion in revenue for the year.
Garmin shares rose $1.15, or +3.9%, 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 5.11% dividend yield, based on last night's closing stock
price of $29.35. The stock has technical support in the $24-$27
price area. If the shares can firm up, we see overhead resistance
around the $34 price level. We would remain on the sidelines for
Garmin Ltd. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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