UPDATE: Garmin Posts Downbeat Q4 Earnings, Issues Weak Outlook

Shares of Garmin Ltd. GRMN dropped more than 2% in pre-market trading after the company reported weaker-than-expected earnings for the fourth quarter and issued a downbeat 2015 forecast. For 2015, Garmin projects earnings of $3.10 per share on revenue of $2.9 billion. Analysts had expected earnings of $3.24 per share on revenue of $2.92 billion. The Schaffhausen, Switzerland-based company reported a profit of $210.2 million, or $1.09 per share in the latest quarter, versus a year-ago profit of $163.6 million, or $0.83 per share. Pro forma earnings gained to $0.77 per share from $0.76 per share. Its revenue climbed 5.7% to $803.3 million. However, analysts were estimating earnings of $0.78 per share on revenue of $790 million. Sales at the company's automotive and mobile segment fell 11% to $339.8 million, while sales at the fitness unit jumped 70%. Revenue from its outdoor segment dropped 8%, while the aviation segment's revenue gained 7%. Revenue at the marine segment jumped 18% in the period. Total operating expenses climbed 15% to $255 million. The company announced a $300 million share-buyback program. Garmin also announced its plans to lift its quarterly dividend to $0.51 per share. Garmin ended the quarter with cash and marketable securities of almost $2.8 billion. "Through an intense focus on innovation and execution, we posted four consecutive quarters of revenue and pro forma EPS growth in 2014. We have redefined our earnings power as a company and further diversified our operating profit base," said Cliff Pemble, president and chief executive officer (CEO) of Garmin Ltd. Garmin shares fell 2.31% to $55.50 in pre-market trading.