Garmin Sees Q2 Earnings Below Consensus; Cuts FY15 Earnings Outlook

(RTTNews) - Garmin Ltd. (GRMN) said Wednesday that it expects to report revenue of $770 million to $775 million and earnings of $0.70 to 0.72 per share for the second quarter.

Analysts polled by Thomson Reuters currently expect the company to earn $0.91 per share on revenue of $773.11 million for the second quarter.

For the full year 2015, Garmin continues to expect revenue of about $2.9 billion, but lowered its pro forma earnings outlook to about $2.65 per share from its prior outlook of $3.10 per share.

Analysts polled by Thomson Reuters currently expect the company to earn $3.06 per share on revenue of $2.87 billion for the full year 2015.

"Revenue performance was in line with our expectations in light of the difficult currency environment caused by a stronger US dollar. However, ongoing weakness of the Euro coupled with a stronger Taiwan Dollar has created further gross margin pressure. Additionally, the current competitive environment in the fitness market necessitates more aggressive pricing with higher advertising expenses," said Cliff Pemble, president and chief executive officer of Garmin. "We are revising our full year outlook to reflect the dynamics we face in the current operating environment."