Garmin Is Still a Buy

Article Excerpt

GARMIN $15.98 (Nasdaq symbol GRMN; SI Rating: Speculative) (913-397-8200; www.garmin.com; Shares outstanding: 202.5 million; Market cap: $3.2 billion) reports that in the three months ended September 27, 2008, earnings per share excluding one-time items fell 3.3%, to $0.88 from $0.91 a year earlier. Sales rose 19.4%, to $870.4 million from $728.7 million. In the latest quarter, North American sales rose 29%, Europe was up 9% and Asia fell 21%. Intense price competition hurt profits. Garmin has cash and marketable securities of $539.6 million or $2.60 a share, and no debt. The stock now trades at just 4.2 times next year’s forecast earnings of $3.84 a share. The company’s launch of its new Nuvifone smartphone is now set for the first half of 2009. Garmin is still a buy. buy…