Garmin Q3 Results Miss Estimates; Outlook Reduced

Garmin (GRMN) posted third quarter revenue of $870 million and diluted earnings of 82 cents a share, below the Street at $865.6 million and 84 cents. The company said profits were reduced by 5 cents a share by foreign exchange factors. For the full year, the GPS device maker now sees revenue of $3.6 billion and profits of $3.78 a share, below the Street consensus of $3.81 billion and $3.89. The company’s previous guidance was for $3.98 billion and $3.86 a share. Garmin said it is scaling back operations to better match current business conditions, and adjusting inventory planning to reduce inventory by $150 million year end. The company also said that the Nuvifone is on target for launch in the 2009 first half; Garmin says it has signed letters of intent or agreements with certain carriers, but does not expect specific announcements until closer to launch. (link)