Garmin (ticker: GRMN), maker of personal navigation devices powered by GPS, reported 3Q05 revenues and earnings slightly above analysts' projections, but weaker guidance sent the stock down 12% following its report.
In a note to clients, Lehman Brothers called Garmin's guidance "somewhat disappointing" and said to expect Garmin's stock to remain "somewhat range bound until visibility improves on consumer margin outlook & GRMN’s Auto NAV position ahead of likely aggressive new product launches and push into the NA market by [European competitor] TomTom."Meanwhile, Jim Gillies makes the bullish case for GRMN, noting that Garmin's strong internal R&D investment may give it a long-term advantage over TomTom.
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