Garmin Misses on Revenue

Shares slide 12%.
Author:
Publish date:

Garmin (GRMN) - Get Report plunged 12% Wednesday after the global positioning outfit missed third-quarter revenue targets.

Earnings for the quarter ended Sept. 30 rose to $123 million, or 56 cents a share, from the year-ago $102 million, or 47 cents a share. Excluding foreign currency effects, earnings rose to 50 cents from 33 cents a year earlier, matching the Thomson Financial analyst consensus estimate.

Revenue rose to $408 million from $251 million a year earlier, falling shy of the $423 million Wall Street consensus.

"We believe the long-term opportunities in our aviation business will be excellent, and were pleased with the positive response generated by the many exciting new products introduced for delivery in 2007 during the Oshkosh Air Show in late July, including the G600 retrofit product, G900 kit plane avionics suite, and G1000 retrofit cockpit for King Air C90 aircraft," said CEO Min Kao. "However, delay of the WAAS roll-out resulted in softer results for this segment in the third quarter 2006, and pushed revenue opportunities for this new technology into 2007."

Garmin said it expects to make $2.04 a share on revenue of $1.68 billion for 2006, in line with the Wall Street estimates.

Shares fell $6.56 to $46.85.