CAYMAN ISLANDS (
reported improved fourth quarter earnings, but expects earnings per share to decline in 2010.
Garmin says that factors including an anticipated increase in the effective tax rate result in a forecasted 2010 earnings per share decline of 11% to 22% based on the results in 2009.
For 2010, the company and its subsidiaries are projecting earnings of $2.75 to $3.15 compared with The Street consensus forecast of $2.69.
Garmin expects revenue growth in the range of 0% to 5% driven primarily by the company's outdoor/fitness, marine and aviation segments.
For the fourth quarter, Garmin said earnings per share increased 77% to $1.38 from 78 cents a year ago. The company and its subsidiaries reported GAAP net income of about $278.4 million compared with $157.7 million the previous year.
Meanwhile, its pro forma earnings per share increased 54% to $1.43 from 93 cents the same quarter a year ago.
Garmin reported revenue of $1.059 billion in the quarter, up 1% from $1.048 billion a year ago, partly driven by a 24% increase in the outdoor/fitness segment. Analysts surveyed by Thomson Reuters predicted earnings of 95 cents a share on revenue of $955.66 million.
For the full year, Garmin saw pro forma earnings per share increase 3% to $3.53 from $3.42 the previous year.
-- Reported by Andrea Tse in New York
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