Motley Fool: Garmin Faintly Praised | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 08.10.17

Airborne 08.14.17

Airborne 08.15.17

Airborne 08.16.17

Airborne 08.17.17

Airborne 08.11.17

Airborne-Unmanned 08.15.17

Airborne-YouTube

AMA 08.10.17

Airborne 08.14.17

Airborne 08.15.17

Airborne 08.16.17

Airborne 08.17.17

Airborne 08.11.17

Airborne-Unmanned 08.15.17

NEW!!! 2017 AirVenture Innovation Preview -- YouTube Presentation / Vimeo Presentation

Tue, Feb 17, 2004

Motley Fool: Garmin Faintly Praised

But It's Still A Stock You'd Want To Own

Investors woke up in a bad mood last week, quickly dumping shares of Garmin for not living up to lofty expectations. Shares in the maker of global positioning (GPS) equipment were smacked down over 10% to $46.82.

While Garmin's fourth-quarter performance outpaced expectations, its forward guidance didn't sit well with analysts.

Revenue for the quarter came in at $170.1 million, boosting full-year revenue to $573 million -- 23% over 2002 sales. Both measures were above the company's earlier guidance of $155 million to $160 million for the quarter and $558 million to $563 million for the year. A consistent moneymaker, Garmin's net income for the year increased to $178.6 million, a full 25% higher than last years.

In case you missed Garmin's products on the store shelves over the holidays, it is the premier supplier of navigation electronics that uses GPS satellites for accurate positioning. In addition to products used by outdoor enthusiasts for activities such as hiking and boating, the company supplies the aviation industry with flight navigation and communication equipment, on both an original equipment manufacturer (OEM) and aftermarket basis. 

Started in the late 1980's, Garmin mostly developed products for the military and aviation industry. As consumer use of GPS technology has grown, Garmin has leveraged its expertise to take a commanding lead in the market. A whopping 80% of Garmin's fourth-quarter revenue came from the consumer products segment. This segment also grew at a nice clip of 29% in 2003 compared to last year -- and many industry watchers think the proliferation of GPS technology into consumer electronics is still in its early stages.

While the GPS market has largely escaped the hype of other high-tech segments, Garmin's fiscal performance has not gone unnoticed -- the stock is priced with expectations for above-average growth. After yesterday's drop, shares in the company currently sit at 28.5 current earnings, and 25 times the mean forward estimates given by the company.

But to this Fool, Garmin is the kind of company you feel good about owning -- great margins, consistent cash flow, and a dominant position in its market. And I'm in good company -- fellow Fools Jeff Fischer and Rex Moore have been eyeing Garmin as well. With so many unprofitable companies with overpriced shares dominating the technology space today, a steady performer with a bright future like Garmin is worth a look.

FMI: www.fool.com

Advertisement

More News

RFP: ANN Seeking New Site/Facility For Major Studio Upgrade

It's Official: Aggressive Upgrades For New Airborne Programs WILL Require New Digs It's been in development for years, but we're getting to a point where we think we can pull off s>[...]

AMA Drone Report 08.10.17: AMA Gov't Outreach, Nat'l Model Av Day, Lego Drones

Also: Volaero Tracks Pythons, Army v DJI, Snap Acquiring Drone?, Orlando Backs Down There’s no rest for the folks at AMA that deal with the politics that comes with flying ho>[...]

Airborne-Unmanned 08.15.17: Reno Drone Races, DoD CrackDown, Blue Angels v UAV?

Also: Kansas DOT-AirMap, CIRRUAS Drone Program, Daytona Beach PD UAS, Virginia UAS SAR The Reno Air Racing Association has signed an agreement with the MultiGP Drone Racing League >[...]

Airborne 08.15.17: Lycoming AD, Reno Drone Racing!, Santa Monica NIMBYs

Also: Icon A5 Accident, Aero-Calendar, Land Remote Sensing, Storm Aviation, Frontier, World Helicopter Day, Hubble The FAA has issued an Airworthiness Directive (AD) for the connec>[...]

Airborne 08.14.17: Concorde Return?, KSMO RWY Plans, DC Overflights

Also: San Mateo $$, Verhees Delta, Midwest Express, BizAv Activity, Cal Fire, AAR Ldg Gear, jetAVIVA The Concorde SST was retired in 2003 by British Airways and Air France after th>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC