Earnings Report: Garmin (NASDAQ:GRMN) Reports Strong Earnings Beat, Guides Above Estimates

2/24/2010-Shares of Garmin (NASDAQ:GRMN) are trading 2.9% higher to $35.45 premarket Wednesday after the company reported Q4 EPS of $1.43, ex-items, trumping consensus estimates of $0.95.

Revenues for the quarter rose 1% year-over-year to $1.06 billion, besting consensus estimates of $955.6 million.

For 2010, the company expects EPS in the range of $2.75 to $3.15 on revenues of $2.9 billion to $3.1 billion, versus consensus estimates of $2.63 on revenues of $2.8 billion.

Dr. Min Kao, Chairman and CEO, commented, "We saw strengthening trends in both revenues and units during the fourth quarter and are pleased to deliver year-over-year revenue and earnings per share growth in the quarter. While revenues grew 1% year-over-year, our margin improvements allowed us to post 54% pro forma earnings per share growth. We are very pleased with these results and our execution in what is a traditionally tough quarter due to aggressive pricing."

Kao continued, "Looking at the full year results, a significant highlight is the gross and operating margin expansion that was achieved in a period of declining revenues. Full year gross margins increased 450 basis points while operating margins increased 200 basis points. These results continue to demonstrate the agility of our vertically integrated organization and the determination of our associates to deliver the best possible results in spite of the challenging macroeconomic environment. We should also highlight the strong cash flow generation in 2009. The free cash flow generation of over $1 billion further strengthens our debt-free balance sheet and offers us more flexibility than many of our competitors."

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