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Needham & Compnay Adjusts Ests on Garmin (GRMN) Following Q4 Report, Outlook; Fitness Strength Saves the Quarter

February 18, 2015 3:22 PM EST
Get Alerts GRMN Hot Sheet
Price: $147.98 --0%

Rating Summary:
    6 Buy, 17 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 8 | New: 10
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Needham & Company affirms Garmin (Nasdaq: GRMN) at Hold following Q4 results and mixed FY15 guidance.

Analyst Richard Valera noted that results were bolstered from upside in Fitness, while Outdoor and Aviation failed to meet expectations. We are impressed by GRMN's growth in Fitness and solid performance in most non-Auto categories in 2014. For 2015, however, a deferred revenue headwind, FX headwinds and a flat Outdoor outlook resulted in guidance calling for flattish revenue growth and down EPS. As well, we harbor concerns about the longer term growth prospects of the company's fitness tracker business, which appears more faddish to us than its historical fitness products. While acknowledging reset 2015 expectations likely improve near-term risk/reward, we maintain our Hold for now, the analyst commented.

Estimate adjustments: 2015 revenue/NG EPS goes to $2.89 billion/$3.11 from $2.94 billion/ $3.23. We initiate 2016 estimates of $2.99 billion/$3.27.

For an analyst ratings summary and ratings history on Garmin Ltd. click here. For more ratings news on Garmin Ltd. click here.

Garmin Ltd. closed at $56.81 yesterday.



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