24/7 Wall St. » Garmin

Cramer’s Immune Growth Pick In A Crummy Market (GRMN, UA, CROX, NVT, TRMB, SIRF)

247wallst — Wed, 15 Aug 2007 17:36:28 +0000

On tonight’s MAD MONEY on CNBC, Jim Cramer wanted to look at what actually works in a major credit crunch. His situation that worked back in 1990 in food, drug, and soft goods work now, but he’s been covering that already. The other area he likes: HIGH GROWTH.

Garmin (NASDAQ:GRMN) is a phenomenal high-growth story equal to the trends seen in Under Armour (NYSE:UA) and Crocs (NASDAQ:CROX). Here’s what he likes about it: It is the leader in global positioning that is trading under its growth rate. He really liked the beat they gave with earnings last quarter and the raised guidance. Shares are down 14% because of the market sell-off and it is still above where it was when it reported. If shares get much weaker he thinks it’s a gift. He thinks that it is a cheap growth stock that if he uses the highest estimate from Merrill Lynch that this can hit $116.00.

Cramer even brought on Garmin’s CFO for a telephone interview. The CFO, Kevin Rauckman, said the company was even surprised with the margins. The pricing pressures they anticipated haven’t yet surfaced. As far as manufacturing capacity, they bought a third factory in Taiwan so it can keep doing its own manufacturing and is now in great supply-side shape the rest of the year. Navigation is still strong and they haven’t seen a pinch from the weaking consumer yet.

Cramer: Will you have enough product for Christmas? Rauckman, CFO: "Absolutely….."

If you like the navigation sector, here is what we gave for the sector wrap-up when these companies all reported earnings within the same 24-hour period and here was the preview for the group. NAVTEQ (NYSE:NVT) and Trimble Navigation (NASDAQ:TRMB) are the two other leaders out of the GPS sector, and SiRF Tech (NASDAQ:SIRF) is the one that makes many of the chipsets and software systems for mobile communications GPS systems.

Jon C. Ogg
August 15, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

GPS Stocks Cruising Up Wall Street & Main Street (GRMN, NVT, TRMB, SIRF)

247wallst — Wed, 01 Aug 2007 08:30:06 +0000

NAVTEQ Corp. (NYSE:NVT) is seeing its shares trade up over 10% on strong orders that exceeded estimates and guidance that equally exceeded estimates. This puts shares within striking distance of highs.

Sector leader Garmin Ltd. (NASDAQ:GRMN) shares are trading up 9% pre-market on results that mirrored those of NAVTEQ. Earnings rose a sharp 74% with EPS coming in at $0.98 versus a $0.74 estimate.The company raised 2007 guidance on EPS to $3.15 EPS or higher, above the $2.90 estimate from First Call. Shares are trading at new highs pre-market.

The smaller player in the group is Trimble Navigation Ltd. (NASDAQ:TRMB), is seeing shares indicated up over 3% pre-market on a 23% profit rise. The company sees EPR at $0.26 to $0.28 and revenues of $294 to $299 million, compared to estimates of $0.26 EPS and under $294 million in revenues. Trimble shares are going to be within a few percent of that $35.60 high.

The only loser in the group is the chip maker for GPS systems, SiRF Technology (NASDAQ:SIRF). It shares were hampered by what may be as little as one large order or a couple orders still pending and not completed, but nonetheless it posted light revenues and that won’t cut it. Shares are trading down over 8% pre-market. This drop puts shares only about $3.00 above the $18.20 low seen in the last 52-weeks.

Here was the full earnings preview for the sector yesterday ahead of the earnings onslaught.

Jon C. Ogg
August 1, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Global Positioning Earnings Onslaught (GRMN, NVT, SIRF, TRMB)

247wallst — Tue, 31 Jul 2007 11:48:59 +0000

It is rare that one sub-sector has all of the key components reporting earnings within the same 24 hour period, but that is the case with the "GPS" or global positioning stocks. Tonight we have earnings from Timble (TRMB), NAVTEQ (NVT) and SiRF Tech (SIRF). Tomorrow morning is Garmin (GRMN). If you are in outside sales, the military, shipping, or do lots of driving then you know the addiction to these. Particularly since a research analyst just yesterday and Jim Cramer recently called NAVTEQ (NVT) a buyout candidate. These reports are all after reports that TomTom agreed to Buyout NAVTEQ’s rival TeleAtlas for some $2.6 Billion. Keep in mind that these have experienced significant gains and are all considered hi-beta names. Here are the earnings previews with some brief notes:

NAVTEQ (NYSE:NVT) reports after today’s close: $0.27 EPS & $180.25M revenues; next quarter $0.26 EPS & $181.4M revenues; Fiscal 2007 $1.33 EPS & $747.8M revenues. Shares within 10% of recent yearly highs and up over 100% from year lows. 40+ P/E ratio, recently noted as takeover candidate.

Trimble Navigation (NASDAQ:TRMB) reports after today’s close: $0.30 EPS & $311.7M revenues; next quarter $0.26 EPS & $293.4M revenues; Fiscal 20067 $1.12 EPS & $1.19 Billion revenues. TRMB within 6% of 52-week highs and up over 60% from lows. Almost $4 Billion market cap and 36+ P/E ratio.

SiRF Tech (NASDAQ:SIRF) reports after today’s close: $0.23 EPS & $71.5M revenues; next quarter $0.28 EPS & $81.4M revenues; Fiscal 2007 $1.06 EPS & $315.5M revenues. Just recently in new collaboration with Intel pre-market; stock well off of highs because of prior guidance; still massive P/E ratio because of items, but has only a 22.6 forward P/E ratio if it hits estimates.

Garmin Ltd. (NASDAQ:GRMN) reports Wednesday morning before the open: $0.73 EPS & $645.7M revenues; next quarter $0.67 EPS & $601M revenues; Fiscal 2007 $2.90 EPS & $2.62 Billion revenues. Stock already above most analyst targets because of outperformance; shares within 1% of all-time highs (52-week) with an $18.7 Billion market cap; Forward P/E close to 30.

Jon C. Ogg
July 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.