Garmin Cuts FY22 Earnings, Revenue View Below Market - Update

(RTTNews) - While reporting weak second-quarter results on Wednesday, technology company Garmin Ltd. (GRMN) trimmed its fiscal 2022 earnings and revenue outlook below market estimates.

In pre-market activity on the NYSE, Garmin shares were losing around 8 percent to trade at $94.

For the year 2022, the company now expects pro forma earnings per share of $4.90, on revenues of approximately $5.0 billion.

The company previously expected pro forma earnings of about $5.90 per share on revenues of about $5.50 billion.

On average, four analysts polled by Thomson Reuters expect earnings of $5.95 per share for the year on revenues of $5.48 billion. Analysts' estimates typically exclude special items.

For the year, gross margin is now expected to be 56.7 percent and operating margin to be 20 percent.

Cliff Pemble, President and Chief Executive Officer, said, "Markets continue to normalize following two years of pandemic driven growth, and we also face additional headwinds including the relentless strengthening of the U.S. Dollar, high inflation, and rising interest rates. While we must adjust expectations, we believe that our lineup of innovative products and strategy of diversification will allow us to remain strong in an evolving economic environment."

Further, the company said its board of directors has established September 30 as the payment date for the next dividend installment of $0.73 per share with a record date of September 15.