Garmin Ltd. Second Quarter Earnings Sneak Peek

Garmin Ltd. (NASDAQ:GRMN) will unveil its latest earnings on Wednesday, August 3, 2011. Garmin Ltd. 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 estimate of analysts is for profit of 66 cents per share, a decline of 1.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 65 cents. Between one and three months ago, the average estimate was unchanged, but has risen during the last month. For the year, analysts are projecting net income of $2.49 per share, a decline of 12% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of 49 cents per share against a mean estimate of net income of 33 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 4 cents.

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Wall St. Revenue Expectations: On average, analysts predict $633.8 million in revenue this quarter, a decline of 13% from the year ago quarter. Analysts are forecasting total revenue of $2.52 billion for the year, a decline of 6.3% from last year’s revenue of $2.69 billion.

Analyst Ratings: Analysts seem relatively indifferent about Garmin with 11 of 15 analysts surveyed maintaining a hold rating.

Key Stats:

A year-over-year revenue increase in the first quarter snaps a streak of two consecutive quarters of revenue declines. Revenue rose 17.8% in the first quarter and fell 20.9% in the fourth quarter of the last fiscal year and 11.4% in the third quarter of the last fiscal year.

The increase in profit in the first quarter comes after net income fell in the previous quarter. In the first quarter, net income rose more than twofold to $95.5 million. In the fourth quarter of the last fiscal year, net income fell 52.3%.

Competitors to Watch: 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), Sprint (NYSE:S), Verizon (NYSE:VZ), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG) and Research In Motion Ltd. (NASDAQ:RIMM).

Stock Price Performance: During June 1, 2011 to July 28, 2011, the stock price had fallen $1.15 (-3.5%) from $33.25 to $32.10. The stock price saw one of its best stretches over the last year between April 19, 2011 and April 27, 2011 when shares rose for six-straight days, rising 3.3% (+$1.07) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 4.9% (-$1.66) over that span. Shares are up $1.85 (+6.1%) year to date.

(Source: Xignite Financials)

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