Garmin, a maker of electronic devices for fitness, navigation and outdoor recreation, on Wednesday handily beat Wall Street's targets for the second quarter and upped its full-year outlook. But Garmin stock fell as investors parsed its guidance.
The Olathe, Kan.-based company earned an adjusted $2.17 a share on sales of $1.81 billion in June quarter. Analysts polled by FactSet had expected earnings of $1.90 a share on sales of $1.7 billion. On a year-over-year basis, Garmin earnings increased 37% while sales climbed 20%.
Garmin makes devices for golfers, boaters, hikers, runners and other outdoor enthusiasts.
For the full year, Garmin now expects to earn an adjusted $8 a share on sales of $7.1 billion. Analysts had been expecting earnings of $7.97 a share on sales of $6.89 billion. Last year, Garmin earned $7.39 a share on sales of $6.3 billion.
However, Garmin's earnings guidance implies a weaker second half of the year, Barclays analyst Tim Long said in a client note. Long rates Garmin stock as underweight, or sell, with a price target of 167.
On the stock market today, Garmin stock plunged 7.4% to close at 221.49.
Garmin stock had formed a cup base with a buy point of 246.50, according to IBD MarketSurge charts. That buy point is also the stock's all-time high, reached on Feb. 19.
"We delivered another quarter of outstanding financial results with double-digit growth in every segment, driven by our strong lineup of innovative and highly differentiated products that customers desire," Chief Executive Cliff Pemble said in a news release.
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