Garmin Earning Up 35%; Stock Down
These are some crazy times; Garmin's earnings were up against last year, but not up enough for the stock market to feel comfortable, and as a result, Garmin's stock lost a few bucks after teh earnings announcement. To be clear, the earnings were the best Garmin ever had, and sales are up 35% overall, with 43% increase in automotive sales, 30% in Marine sales, 19% increase in Aviation sales, and a 16% increase in Fitness/Outdoor sales. Garmin also cited their strategy of distributor acquisition in Europe as a main reason for gaining sales there.
The problems come when Wall Street expected more from them, and from the fact that operating margins shrank, meaning that prices are shrinking faster than costs versus a year ago.
CEO Min Kao said
"We are pleased with our performance in the first quarter, particularly given the general slowdown in the global economy. Demand for our automotive/mobile products continued beyond the traditionally strong fourth quarter holiday season, with another quarter of robust triple-digit growth. While the first quarter is typically our slowest quarter, we were
nonetheless able to achieve healthy growth in each of our business segments and each geographic area."
Read the full press release (pdf)
Read More in: Earnings Announcements | Garmin GPS News
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Posted by Scott Martin at April 30, 2008 7:09 PM