Garmin Second Quarter Earnings Sneak Peek

Garmin Ltd. (NASDAQ:GRMN) will unveil its latest earnings tomorrow, Wednesday, August 1, 2012. Garmin and its subsidiaries manufacture, market, and distribute Global Positioning System-enabled products and other related products.

Garmin Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 67 cents per share, a rise of 19.6% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 1.1% versus last year to $2.64.

Past Earnings Performance: Last quarter, the company reported net income of 44 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Stock Price Performance: Between May 1, 2012 and July 30, 2012, the stock price fell $8.57 (-18.18%), from $47.13 to $38.56. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 3.1% (-$1.12) over that span.

A Look Back: In the first quarter, profit fell 9% to $86.9 million (44 cents a share) from $95.5 million (49 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 9.6% to $556.6 million from $507.8 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.95 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 8.6% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 12.4% over the past four quarters.

Analyst Ratings: There are mostly holds on the stock with six of 10 analysts surveyed giving that rating.

Wall St. Revenue Expectations: On average, analysts predict $686.5 million in revenue this quarter, a rise of 1.8% from the year-ago quarter. Analysts are forecasting total revenue of $2.79 billion for the year, a rise of 1.1% from last year’s revenue of $2.76 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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