Garmin stock drops 10 percent in early trading
Garmin Ltd. (NASDAQ:GRMN) announced today Q4 and full year results ending on December 29, 2012. Slumping sales in the automotive/mobile segment may have been the contributing factor to the price drop today.
According to President and CEO Cliff Pemble,
the auto motive/mobile segment revenues declined 6% and 25% for the full year and fourth quarter, respectively. We experienced steeper declines in the quarter as our consistent market share gains could no longer offset the industry declines.
For the fiscal year, Garmin increased revenue all business areas except for the automotive and marine segments.
For Q4, the only area Garmin increased revenue was is in their popular fitness line which helps athletes track and improve themselves using integrated GPS and mobile/desktop apps.
Despite the lagging revenue growth, Garmin authorized a repurchase of up to $300 million of the company's issued shares. The quarterly dividend is expected to remain annualized at $1.80.