Garmin Profit Plunges 67%, Missing View

GPS navigation maker

Garmin

(GRMN) - Get Report

said Wednesday that its first-quarter profit fell 67% from the same period last year, citing a consumer spending slowdown amid the global economic recession.

The Cayman Islands-based company reported first-quarter net income of $48.5 million, or 24 cents per share, compared with $147.8 million, or 67 cents per share, in the year-ago period. Excluding currency effects, the company posted adjusted profit of 25 cents per share, while sales tumbled 34% to $437 million from $664 million.

These results badly missed expectations. On average, Wall Street analysts expected net income of 42 cents per share on sales of $531.6 million.

Garmin CEO Min Kao blamed lower consumer spending, as well as lower inventories by retailers, for the earnings miss. Kao said that a new product offered along with cost-cutting measures should help to improve the company's results for the upcoming second quarter.

Garmin shares plunged $4.06, or -16%, in morning trading Wednesday.

We have avoided shares of GRMN since our early June coverage began, when the stock was trading at $51.34. The company has a 2.92% dividend yield, based on last night's closing stock price of $25.66.

The stock has technical support in the $15 price area. If the shares can firm up, we see overhead resistance around the $27-$32 price levels. We would remain on the sidelines for now.

Garmin is not recommended at this time, holding a Dividend.com DARS Rating of 2.8 out of 5 stars.

Pitney Bowes Shares Plummet on Weak Report and Low Guidance

Mail-processing equipment and solutions provider

Pitney Bowes

(PBI) - Get Report

saw its shares fall more than 10% Wednesday morning, on the heels of its Tuesday earnings report in which it forecast a weak 2009.

The Stamford, Conn.-based company reported first-quarter net income of $104.4 million, or 50 cents per share, down from $119.1 million, or 56 cents per share, in the year-ago period. Revenue dropped 12% to $1.38 billion.

These results badly missed analyst estimates. On average, Wall Street analysts expected earnings of 64 cents per share on revenue of $1.47 billion.

Pitney said that Business Services, which account for 33% of its total revenue, fell by almost 6% to $454.7 million.

The company also guided below analyst estimates, now seeing a full-year 2009 earnings fall between $2.34 and $2.54 per share, with revenue expected to fall 1% to 4%, excluding currency effects.

On average, analysts expect full-year 2009 earnings of $2.63 per share on revenue of $5.95 billion.

Pitney Bowes shares fell $2.82, or -11%, in morning trading Wednesday.

We removed shares of PBI from our "Recommended" list back on Aug. 1, when shares traded at $31.69. The company has a dividend yield of 5.54%, based on last night's closing stock price of $25.99.

The stock has technical support in the $17 price area. If the shares can rebound from today's drop, we see overhead resistance around the $27 level. We would remain on the sidelines.

Pitney Bowes is not recommended at this time, holding a Dividend.com DARS Rating of 3.0 out of 5 stars.

Pacific Gas Profit Climbs 8%, but Falls Short of Street

Pacific Gas and Electric

(PCG) - Get Report

, or PG&E Corporation, said Tuesday that its first-quarter profit rose 8% over the same period last year, but results still fell short of analyst estimates.

The San Francisco-based power company reported first-quarter net income of $241 million, or 65 cents per share, up from $224 million, or 62 cents per share, in the year-ago period. Operating revenue fell, however, to $3.43 billion from $3.73 billion.

On average, Wall Street analysts expected earnings of 72 cents per share.

Pacific Gas reaffirmed its full-year 2009 earnings guidance for $3.15 to $3.25 per share, as well as its 2010 target for $3.35 to $3.50 per share. For 2011, the company announced a range of $3.65 to $3.85 per share.

PG&E shares see-sawed in morning trading Wednesday, opening higher before falling into negative territory, then quickly rebounding up 16 cents, or +0.5%.

We removed shares of PCG from our "Recommended" list on Mar. 10, when the stock was trading at $35.53. The company has a 4.45% dividend yield, based on last night's closing stock price of $37.79.

The stock has technical support in the $34-$35 price area. If the shares can gain some momentum, we see overhead resistance around the $40-$42 price levels. We would remain on the sidelines for now, but we are watching the shares closely.

PG&E Corporation is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.

Disney Profit Plummets 46%, but Still Beats View

The Walt Disney Company

(DIS) - Get Report

said late Tuesday that its fiscal second-quarter profit was eroded by 46% from the same period last year, but its shares rose as results were just enough to beat expectations.

The Burbank, Calif.-based company reported fiscal second-quarter net income of $613 million, or 33 cents per share, compared with $1.13 billion, or 58 cents per share, in the year-ago period. Revenue fell 7% from last year to $8.09 billion.

Excluding special one-time items, Disney posted adjusted earnings of 43 cents per share, enough to beat out the average Wall Street analyst estimate of 40 cents per share. Revenue came up just short of expectations, which were for $8.15 billion.

The company blamed its movie studio, not the economy, for the 97% drop in movie profit during the quarter. CEO Bob Iger said that "It's not the marketplace. It's our slate," when speaking to analysts on a conference call.

The latest quarter includes about $305 million in charges, which include $102 million in restructuring costs, nearly half of which stem from 1,900 job cuts the company made within its theme parks division.

Disney shares rose $2.55, or +11%, in morning trading Wednesday.

We removed DIS from our "Recommended" list back on Sept. 29, when shares traded at $32.75. The company has a dividend yield of 1.51%, based on last night's closing stock price of $23.15.

The stock has near-term technical support in the $18-$19 price area. If the shares can continue its recent rebound, we see near-term overhead resistance around the $27 level. We would remain on the sidelines for now.

The Walt Disney Company is not recommended at this time, holding a Dividend.com DARS Rating of 3.3 out of 5 stars.

Be sure to visit our complete

recommended list of the Best Dividend Stocks

as well as a

detailed explanation of our ratings system

.

At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.

Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.