Garmin Ltd (GRMN), a global leader in satellite navigation, is scheduled to report its fiscal third quarter 2009 financial results on Wednesday, November 4, 2009. In the previous quarter, the company's actual earnings exceeded the market's consensus by 61.5%.
Garmin Ltd previously reported revenue of $669 million and net income of $161.9 million, or $0.81 per share, compared to revenue of $911.7 million and net income of $201.6 million, or $1.19 per share, in Q2 2008.
In the last four years, the company's Q3 revenues trended down over Q2 revenues. The trend is likely to continue. The trend is likely to continue in Q3 2009 as well.
Analysts' estimates for the quarter ending September 2009 (Q3) range from a low of $0.56 to a high of $0.893, with a consensus of $0.693. For the fiscal quarter ending September 2009, the consensus EPS forecast has remained the same over the past week at $0.693 and increased over the past month from $0.689 to $0.693 (0.58%). Of the 19 analysts making quarterly forecasts, 2 raised and none lowered their forecast.
Upward revision in earnings over the past month is attributable to strong business momentum generated in Q2 2009 and the likely continuance of the same in the remainder of 2009. However, the momentum in revenue and earnings are not strong enough to register year-over-year growth in Q3 2009 as well. However, Asia is expected to provided and is expected to provide year-over-year growth in Q3 2009 as well.
Though the company's topline and bottom line are expected to register year-over-year decline, gross margin and operating margins are expected to show year-over-year growth.
Going forward, the company is expected to maintain its leadership in world-wide PND market share. Moreover, the introduction of new marine products including chartplotters, autopilot, VHF radios and radars are expected to help the company maintain revenue growth in the reporting periods to come. However, the company is increasingly under threat due to Google's launch of free navigation service for mobile phones on Wednesday (October 28) that will offer turn-by-turn directions, live traffic updates and the ability to recognize voice commands. The service will initially be available on only one phone, the new Motorola Droid, but will be expanded to more phones soon.
For the fiscal year ending December 2009, the consensus EPS forecast has remained the same over the past week at $2.582 and increased over the past month from $2.576 to $2.582 (0.23%). Of the 18 analysts making yearly forecasts, 2 raised and none lowered their forecast.
The company's stock closed Friday at $30.26, compared to the 52 week range of $14.40 and $39.65. The stock seems to look for lower support levels.
