Garmin Flying High
Can navigation devices maker Garmin (GRMN) maintain its torrid pace?
The company, which reports its third-quarter earnings Wednesday, scorched analyst expectations in the second quarter when it posted earnings of $1 a share against estimates of 74 cents.
Garmin's stock is up 43.5% in the three months since July 30 and up nearly 120% this year. Currently its shares are hovering near the 52-week high of $125.68. The stock was down $1.20, or 0.9%, to $122.57 in recent trading.
Despite fears of a slow summer, analysts expect Garmin to beat the Street's third-quarter expectations because of increased demand for personal navigation devices, strong growth in the company's market share in the U.S. and Europe, and a slower-than-expected decline in the gross margin for its products.Analysts polled by Thomson Financial expect earnings of 81 cents a share on revenue of $683.17 million for the quarter. The company posted earnings of 50 cents a share on revenue of $408 million a year ago. Looking ahead, analysts estimate fourth-quarter earnings of $1.01 a share, up from 87 cents a year ago. They predict revenue of $986.38 million, up significantly from $611.22 in fiscal 2006. For the fiscal year, analysts expect revenue of $2.9 billion and an EPS of $3.42. Analysts will also focus on Garmin's expectations for the holiday sales season.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV