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Garmin Ltd. (GRMN) Misses Estimates, Shares Fall

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Garmin Ltd.’s (NASDAQ: GRMN) quarterly profits disappointed markets by being far below estimates. This led to its shares falling by 14 percent. First-quarter net income fell to $37.3 million or 19 cents a share, from $48.5 million, or 24 cents a share, a year earlier. Excluding items, earnings were 38 cents a share. Net sales fell 1 percent to $431.1 million.

The sales of Portable Navigation Devices (PND) have taken a hit due to the rising use of smartphones that often offer navigation services for free. Garmin has come under pressure ever since Google (NASDAQ: GOOG) and Nokia (ADR) (NYSE: NOK) started offering free turn-by-turn navigation on smartphones.

Kevin Rauckman, the Chief Financial Officer of Garmin, said in a statement that top line results for the first quarter reflect excess inventory at retailers in the PND category. The company expects to meet the previously given full-year earnings and revenue outlook.

Shares of Garmin Ltd. were down by 11.37% to $33.22 in trading at 1.56 p.m. in New York today.

Posted-In: Earnings News Intraday Update Markets Movers

 

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