Garmin Ltd. Third Quarter Earnings Sneak Peek

Garmin Ltd. (NASDAQ:GRMN) will unveil its latest earnings on Wednesday, November 2, 2011. 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 estimate of analysts is for net income of 50 cents per share, a decline of 40.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 60 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 50 cents during the last month. For the year, analysts are projecting profit of $2.09 per share, a decline of 26.1% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 16 cents, coming in at net income of 56 cents per share against a mean estimate of profit of 68 cents. The company topped expectations in the first quarter.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 10.7% in revenue from the year-earlier quarter to $618.1 million.

Analyst Ratings: Analysts seem relatively indifferent about Garmin with 10 of 13 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit fell 18.8% to $109.5 million (56 cents a share) from $134.8 million (67 cents a share) the year earlier, missing analyst expectations. Revenue fell 7.5% to $674.1 million from $728.8 million.

Key Stats:

The decrease in profit in the second quarter came after net income rose in the previous quarter. In the first quarter, net income rose more than twofold.

Over the last four quarters, revenue has fallen an average of 5.5% year over year. The biggest drop came in the fourth quarter of the last fiscal year, when revenue fell 20.9% from the year earlier quarter.

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 August 3, 2011 to October 27, 2011, the stock price had risen $4.31 (14.1%) from $30.49 to $34.80. 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% (+$1.06) 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% (-$1.64) over that span. Shares are up $4.91 (+16.4%) year to date.

(Source: Xignite Financials)

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