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

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 06.20.16

Airborne 06.21.16

Airborne 06.22.16

Airborne 06.23.16

Airborne 06.24.16

Airborne Hi-Def On YouTube

Airborne 06.20.16

Airborne 06.21.16

Airborne 06.22.16

Airborne 06.23.16

Airborne 06.24.16

AEA2016 LIVE Aero-TV: 04/27-0830ET, 04/28-1400ET, 04/29-1100ET

Sun 'n Fun 2016 Innovation Preview on Vimeo!

Sun 'n Fun 2016 Innovation Preview on YouTube!

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

Airborne 06.24.16: ADS-B Analysis, NavWorx Price Drop, ALPA v Transport Canada

Also: Porker Of The Month, Aviation BBB?, Super Puma, AirVenture Events, FedEx 767s, Solar Impulse, Sikorsky Flight Safety Foundation has released the study "Benefits Analysis of S>[...]

Aero-News: Quote Of The Day (06.26.16)

"The Team is proud to resume the Blue Angels mission, representing the pride and professionalism of the Navy and Marine Corps, and inspiring a culture of excellence. The Blue Angel>[...]

ANN's Daily Aero-Term (06.26.16): Coupled Approach

Coupled Approach A coupled approach is an instrument approach performed by the aircraft autopilot which is receiving position information and/or steering commands from onboard navi>[...]

ANN's Daily Aero-Linx (06.26.16)

Aero Linx: Aviators Model Code of Conduct Initiative (AMCC) AVIATORS MODEL CODE OF CONDUCT: Innovative tools advancing aviation safety and offering a vision of excellence for aviat>[...]

US Navy Blue Angels Resume Airshow Schedule

Modified Five-Jet Team Returns To Airshow Circuit The U.S. Navy Blue Angels will return to its 2016 demonstration schedule July 2-4 in Traverse City, MI, Commander, Naval Air Force>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC