Wednesday, May 6, 2009
Navigational device maker Garmin Ltd. says first-quarter profits fell 67% and widely missed Wall Street expectations as the company took the brunt of slower consumer spending.
Shares were down more than 15% to $21.78 in early trading Wednesday.
The Cayman Islands-based company, with its headquarters in Olathe, Kan., reported earning $48.5 million, or 24 cents per share. By comparison, Garmin earned $147.8 million, or 67 cents per share, during the same period a year ago.
Excluding the effect of foreign exchange rates, Garmin said it would have earned 25 cents per share in the latest quarter.
Analysts polled by Thomson Reuters expected profit of 42 cents per share.
Sales tumbled 34% to $437 million from $664 million. Analysts expected revenue of $531.6 million.