Garmin Continues Its Torrid Run; Stock Up 9% on Q4 Earnings
Garmin (NASDAQ: GRMN) released its Q4 earnings results on Wednesday prior to the opening bell. The company posted earnings of $165.6 million or $0.85 per share, compared to $132.9 million or $0.68 per share, in the year ago period.
On an adjusted basis, which is comparable to analysts' consensus, Garmin reported earnings of $187.5 million or $0.96 per share, versus $161.6 million or $0.83 per share, in last year's fourth quarter. This compared to Wall Street consensus EPS estimates of $0.66 - a blowout quarter for the company.
Net sales for the period were up 9% to $909.6 million compared to $837.7 million a year ago. This also exceeded Street consensus revenue estimates of $769.94 million by a wide margin.
Looking ahead, Garmin sees fiscal 2012 adjusted earnings between $2.45 and $2.60 on revenue of between $2.7 billion and $2.8 billion. This compares to current analysts' consensus of $2.41 on revenue of $2.55 billion.
Not surprisingly, GRMN shares have jumped during Wednesday's trading session. Heading into the close, the stock had risen 9.62% to $49.01. Garmin has been on a tear since October when the stock traded as low as $30.60. Over the last 6 months, GRMN has added 54.43%.
Whereas Garmin used to be a fairly cheap stock on a valuation basis, the recent rally has lifted its P/E multiple considerably. The stock currently trades at a trailing P/E of 19.52, a forward P/E of 20.24, and a PEG ratio of 2.05. The stock also is currently yielding a very healthy 3.60% at current levels.
