Garmin Earnings Cheat Sheet: Twofold Profit Jump As Sales Climb 17% Higher

Garmin Ltd. (NASDAQ:GRMN) reported net income above Wall Street’s expectations for the first quarter. Garmin Ltd. and its subsidiaries manufacture, market, and distribute Global Positioning System-enabled products and other related products.

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Garmin Earnings Cheat Sheet for the First Quarter

Results: Net income for the scientific and technical instruments company rose to $95.5 million (49 cents/share) vs. $37.3 million (19 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.

Revenue: Rose 17.8% to $507.8 million YoY.

Actual vs. Wall St. Expectations: GRMN reported adjusted net income of of 43 cents/share. By that measure, the company beat the mean estimate of 33 cents/share. Estimates ranged from 21 cents per share to 40 cents per share.

Quoting Management: Executive overview from Dr. Min Kao, Chairman and Chief Executive Officer: “The first quarter of 2011 provided strong revenue performance as each of our business segments contributed to 18% revenue growth,” said Dr. Min Kao, chairman and chief executive officer of Garmin Ltd. “We were pleased with the growth of our outdoor, fitness, aviation and marine segments which combined posted revenue growth of 16% and operating income growth of 10%. We continue to invest in these segments in order to capitalize on the numerous long-term growth initiatives in each of them.”

Key Stats: From the fourth quarter of the last fiscal year, the company’s current liabilities fell to $469.9 million from $669 million.

A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 20.9% in the fourth quarter of the last fiscal year and fell 11.4% in the third quarter of the last fiscal year.

Net income has increased 18.7% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than twofold from the year earlier quarter.

Companies to Watch: Sprint (NYSE:S), Verizon (NYSE:VZ), Apple (NASDAQ:AAPL), KVH Industries, Inc. (NASDAQ:KVHI), Cobra Electronics Corp. (NASDAQ:COBR), TeleNav, Inc. (NASDAQ:TNAV), Trimble Navigation Limited (NASDAQ:TRMB), Nokia Corporation (NYSE:NOK), Motorola Solutions Inc (NYSE:MSI), Motorola Mobility Hldgs. Inc (NYSE:MMI), and Research In Motion Ltd. (NASDAQ:RIMM)

Stock Performance: Shares of GRMN are trading at $35.41 as of May 4, 2011 at 10:27 AM ET, up over 5% from the previous closing price of $33.49.


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