Garmin 3Q net income falls; company raises outlook
NEW YORK (AP) — Navigation device maker Garmin Ltd. said Wednesday that its net income fell 7 percent in the third quarter as the stronger dollar hurt its results. But stronger sales of cars and mobile devices and outdoor gadgets helped boost revenue, and results topped analyst expectations.
Garmin said revenue in the Americas increased, which helped counter a decline in sales in Europe, the Middle East and Africa. The company also raised its annual net income guidance.
Garmin said earnings slipped to $140.3 million, or 72 cents per share, from $150.4 million, or 77 cents per share. Revenue rose 1 percent to $672.4 million from $667 million.
Analysts were forecasting net income of 61 cents per share and $662.3 million in revenue, according to FactSet.
Garmin said it lost $5.5 million on exchange rates as the dollar gained strength relative to other currencies. In the third quarter of 2011, it had gained $12.8 million on currency translations.
Automotive and mobile revenue totaled $384.4 million, essentially flat year-over-year. Outdoor device revenue grew 11 percent to $105.6 million, helped by demand for dog tracking and golf line-up gadgets. Revenue from sales of GPS systems for aircraft improved, but the fitness segment saw revenue fall 6 percent as growth in cycling and multi-sport were offset by a slowdown in running watches.
Garmin said revenue from the Americas and Asia-Pacific region rose 8 percent to a combined total of $380 million, while Europe-Middle East-Africa revenue fell 13 percent to $225 million. Asia-Pacific revenue grew 19 percent to $67 million.
For the full year, the company now expects to earn $2.75 to $2.90 per share, up from its previous estimate of $2.70 to $2.85 per share. Analysts expect $2.73 per share, on average.
Shares of Garmin fell 98 cents, or 2.5 percent, to $38.01 in afternoon trading.