Garmin Plunges on Earnings Miss

Garmin Ltd. (GRMN - Analyst Report) reported worse-than-expected first-quarter results as sales across its key segments declined on lower demand, sending shares down more than 14% today.

The navigation device maker earned 25 cents per share, eliminating items, easily missing analysts' projection of 42 cents. In the year-ago period, Garmin’s earnings stood at 67 cents per share.

Sales declined 34.2% year over year to $436.7 million.

Revenue at its automotive/mobile division dipped 43% to $260 million. Furthermore, its high-margin aviation division saw a 31% decrease in revenues, amounting to $59 million.

Four analysts out of 22 cut back on expectations in the past month, causing the average forecast to drop a penny to $2.38 per share.

Next year's estimate has declined to $2.26 from $2.29 in the same period as 3 out of 15 analysts revised downwards.

So far, this Zacks #3 Rank ("Hold") stock is trading on a higher-than-normal volume of 6 million shares, compared to its average volume of 2.2 million.