Garmin Ltd. (NASDAQ: GRMN) is out with earnings that beat estimates. The GPS and personal navigation systems maker has reported that demand for its outdoor products rose, as did the revenue from its personal navigation devices.
Garmin’s net income rose to $185.9 million from $109.5 million a year earlier, while earnings per share (EPS) rose to $0.95 from $0.56. We also see that the earnings came to $0.98 per share if you back out the extraordinary items for the non-GAAP earnings number. The company also reported that total revenue rose to $718 million for a 7% gain from the $674 million in revenue in the second quarter of 2011.
Thomson Reuters had estimates of $0.67 EPS and almost $686.5 million in revenue for the quarter. Gross margin also improved both sequentially and year-over-year to 59% for second quarter 2012, which is versus 51% in first quarter 2012 and 48% in second quarter 2011.
Gains were seen in auto/mobile at 8%; outdoor rose 24%; fitness rose by 5%; aviation rose 4%; and marine was the only segment drop with a 14% decline. Sales by region: Americas rose 9%; Europe, Middle East and Africa rose 6%; and Asia Pacific fell by 9%.
For 2012, the guidance is for revenue of $2.75 to $2.80 billion and pro forma earnings are expected to be $2.70 to $2.85 per share. Thomson Reuters has estimates of $2.66 EPS and $2.79 billion in revenue.
Garmin shares closed at $38.61 and the shares are indicated north of $40.00 in premarket trading.
JON C. OGG