Garmin Blows Past Estimates

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