Barclays Capital Equity Research issued a note to clients adjusting its estimates for Garmin Ltd.’s (NASDAQ:GRMN) fourth-quarter results, citing checks that suggested a “sold 4Q coupled with our expectations that management is likely to target a return to growth in 2010.”
Garmin is scheduled to report its quarterly results on Wednesday and Barclays said they “believe accelerating N. Am demand, healthy partner re-orders offset tempered EU demand and expected share loss during GRMN’s 4Q.”
As a result, Barclays lifted its quarter-over-quarter PND unit growth estimate to 64% vs. its previous 45% estimate.
Barclays raised its 4Q estimates to EPS of $0.97 on sales of $957 million, up from $0.83 on sales of $901 million.
Barclays analyst Amir Rozwadowski said, “Looking to 2010, we believe mgmt is likely to paint an encouraging picture of a return to growth, targeting a recovery in all business lines.”
Rozwadowski went on to conclude, “While the GRMN’s ability to ultimately deliver will depend on evolution of the PND mkt against increasing secular pressures, we believe
consensus ests are likely to edge closer to our revised 2010 ests of $2.9B / $2.84 (vs. our prior $2.8B / $2.50).”
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