Garmin Takes Unplanned Detour

Updated from 10:41 a.m. EST

Garmin (GRMN Quote) surprised analysts by beating fourth-quarter estimates thanks to strong holiday sales, but cautious remarks about growing competition from the likes of TomTom sent initially upbeat investors scurrying from its shares.

The Cayman Islands-based digital-navigation-device-maker predicted that earnings will top $4.40 a share in 2008 on revenue of more than $4.5 billion. Analysts currently expect full-year earnings of $4.40 a share with a top line of $4.26 billion.

On a conference call, though, Chief Financial Officer Kevin Rauckman said Garmin anticipates competitive pricing to pressure its automotive and mobile segment this year. ...