Garmin’s Adjusted Q2 Profit Beats View, but Revenue Forecast Cut (GRMN)

By
A A A
Share |

GPS navigation maker Garmin Ltd. ( GRMN ) 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 share.

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 million.

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 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 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 now.

Garmin Ltd. ( GRMN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 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 .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: GRMN

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

Most Active by Volume

85,467,945
  • $16.74 ▼ 0.30%
83,530,302
  • $12.49 ▲ 85.31%
68,697,805
  • $42.55 ▼ 0.77%
58,516,965
  • $101.63 ▼ 0.03%
49,234,469
  • $74.58 ▼ 3.74%
39,038,134
  • $8.56 ▲ 2.27%
37,813,410
  • $49.38 ▼ 5.24%
37,004,144
  • $46.24 ▼ 0.97%
As of 9/15/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com