Needham & Company Reiterates Hold on Garmin Ltd. (GRMN) Following Preliminary 3Q Results

Needham & Company reiterated a Hold rating on Garmin Ltd. (NASDAQ: GRMN) following the company's preliminary 3Q15 results. The company expects 3Q15 results of $680MM and $0.51 NG EPS, vs. prior consensus of $705MM and $0.64.

Analyst Richard Valera commented, "On Wednesday night, Garmin pre-announced preliminary 3Q15 results and reduced its 2015 guidance marking its second pre-announcement/ guidance reduction in the last two quarters. While currency and some cyclical pressures have played roles in GRMN's recent weak results, we believe the company faces a fundamental issue that is less transient in nature. Specifically, as the company has made forays into new product areas to attempt to offset the headwind from secular decline of its PND business (est. 38% of 2015 revenue), it has entered markets that are far more crowded and competitive than its traditional niches and unlikely to yield historical market shares or margins."

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

Shares of Garmin Ltd. closed at $36.96 yesterday.

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