This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Garmin Shares Skid After TomTom Warning

Updated from 10:10 a.m. EDT

Digital navigation-device maker TomTom lowered its first-quarter sales forecast Tuesday, sounding an alarm for others in the sector.

Netherlands-based TomTom said it expects first-quarter revenue in a range of 270 million euros to 280 million euros, or $425 million to $440 million, compared with 296 million euros, or $465 million, in the year-ago period. Analysts currently expect revenue to come in at 341 million euros for the quarter, according to Thomson First Call.

The reduction in TomTom's first-quarter outlook follows price cuts leading up to the introduction of new models, as well as retailers reducing inventory, especially in Europe. Based on the revised first-quarter forecast, the company said it now expects full-year 2008 revenue in a range of 1.8 billion euros to 2.0 billion euros, which is below the Thomson First Call average estimate of 2.14 billion euros.

Shares of TomTom dropped 13% in overseas trading. Rival Garmin (GRMN) fell more than 6.3% to $49.36 on comments from TomTom that all personal-navigation device makers will see softening sales.

"That's not TomTom-specific, it's not even PND-specific, it's a generic desire of retailers to shorten their balance sheets," TomTom CEO Harold Goddijn said during a conference call. "I don't think it's a slowing down of the market overall."

TomTom said it is still going forward with its planned acquisition of digital mapmaker Tele Atlas. The deal, valued at 2.9 billion euros, or $4.3 billion, is on hold as the European Commission has yet to give its approval.

Last week, shares of Garmin dropped 3.5% on a Reuters report that a company executive said first-quarter revenue would drop between 40% and 50% from the previous quarter, which benefited from holiday sales.

At the time, analysts said that Garmin CFO Kevin Rauckman may have been misquoted. Additionally, Garmin senior media relations specialist Jessica Myers said Garmin's "guidance has not changed since the fourth-quarter earnings call."

TomTom is set to report earnings on April 23, and Garmin will post quarterly results a week later.

Meanwhile, digital-map-maker Navteq (NVT), which is planning to be acquired by Nokia (NOK), was edging down 0.3% to $65.84.

Know What You Own: GRMN operates in the technical instrument industry within the technology sector, and some of the other stocks in its field include Thermo Fisher Scientific (TMO), Agilent Technologies (A), SunPower (SPWR) and Applera Corp-Applied Biosystems Group (ABI). These stocks were recently trading at $57.02, -0.58%, $31.26, -0.98%, $87.60, +1.34% and $31.96, -1.54% respectively. For more on the value of knowing what you own, visit's Investing A-to-Z section.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs