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Schaeffer's Street Stories: Garmin Ltd.'s Earnings Bounce Could Be Short-Lived

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^{Published in Science and Technology on Monday, February 23rd 2009 at 10:38 GMT, Last Modified on 2009-02-23 10:39:22 by Market Wire}  

CINCINNATI--([ BUSINESS WIRE ])--Ahead of the open this morning, Garmin Ltd. (NASDAQ: GRMN) reported fourth-quarter earnings of $157.8 million, or 78 cents per share, nearly halving last year's profit of $307 million, or $1.39 per share. Revenue dropped 14% to $1.05 billion, with revenue declining in Europe, Asia, and North America. Excluding foreign exchange impact, the company would have earned 93 cents per share, missing analyst expectations for a profit of 96 cents per share. Garmin stated that it grew market share in the fourth quarter, but it didn't offer 2009 guidance, citing uncertainties.

Still, the stock has rallied more than 10% so far today, as investors keyed on indications of reduced inventory. Garmin said it reduced its inventory by $274 million in the quarter, up from expectations of a drop of about $150 million in inventory levels by the end of the year.

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