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Garmin Forecasts EPS Decline

Garmin reports improved fourth quarter earnings, but expects earnings per share to decline in 2010.
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CAYMAN ISLANDS (

TheStreet

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Garmin

(GRMN) - Get Report

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.

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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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