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

Airborne Unlimited-
Monday

Airborne-Unmanned w/AUVSI-
Tuesday

Airborne Unlimited-
Wednesday

AMA Drone Report-
Thursday

Airborne Unlimited-
Friday

Airborne On ANN

Airborne 12.18.17

Airborne-Unmanned 12.12.17

Airborne 12.13.17

AMA Drone Report 12.14.17

Airborne 12.15.17

Airborne-YouTube

Airborne 12.18.17

Airborne-Unmanned 12.12.17

Airborne 12.13.17

AMA Drone Report 12.14.17

Airborne 12.15.17

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 12.15.17: New Shepard Flies Again, Falcon 5X Cancelled, Flying Car Race

Also: Online Pilot Records Database, GA Security Bill, $1M 4 ERAU, Blades Aerobatic Team Blue Origin's New Shepard made its seventh test flight Tuesday afternoon at the company's l>[...]

AMA Drone Report 12.14.17: Drone Registry, AMA Q&A, New IDRA Boss

Also: LAFD Drones, Toys For Tots FPV, Modular Racing Drone, Community College Drone Program President Donald Trump has signed the Defense Authorization Bill that includes a reinsta>[...]

Airborne-Unmanned 12.12.17: ERAU Storm Chaser, USMC Drone Insignia, Malawian UAV

Also: NLR Signs Agreement, QinetiQ, Big Bend Community College, 2nd Annual UAS Conference, Tigershark UAS Kicking off a series of tests for its capstone project, the UAV Storm Chas>[...]

Aero-News: Quote of the Day (12.18.17)

“Classic jets have been part of the EAA AirVenture warbirds lineup for a number of year, but to include rare British aircraft such as the Meteor, Venom and Vampire makes the >[...]

Klyde Morris (12.18.17)

The Airline Gig Isn't Getting Any Easier, Klyde FMI: www.klydemorris.com>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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