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Garmin Ltd. (NASDAQ:GRMN) announced a record quarter ended June 30, 2007. Total revenue was $742 million, up 72% from $433 million in second quarter 2006 and blasted past the $646 million consensus estimate. Diluted earnings per share increased 75% to $0.98 from $0.56 in second quarter 2006 and far, far ahead of the $0.73 consensus. Excluding foreign exchange, EPS increased 82% to $1.00 from $0.55 in the same quarter in 2006. It is rare to see a company hurt by exchange rates these days, but given the magnitude of the revenue and earnings surprises the exchange rate issues fall into the who-cares category.

Guidance for the full year was increased to at least $2.8 billion in revenue and $3.15 in earnings per share. The prior consensus estimates were for $2.62 billion in sales and $2.90 in earnings per share.

Valuation-wise, Garmin is trading at approximately 30x its earnings and free cash flow. While this is a rich multiple, it is hardly outrageous given the growth they are seeing.

GRMN 1-yr chart:

GRMN 1-yr chart

Source: Garmin's Current Valuation Is Reasonable Based On Its Stellar Growth