Garmin Ltd, the biggest maker of mobile navigation systems in the U.S., missed second-quarter earnings estimates and cut its full-year forecast because of a shrinking market for portable devices in North America.
Earnings per share declined to 56 cents from 67 cents a year earlier, the manufacturer said today in a statement. Profit was less than the average of 67 cents a share of 12 analyst estimates compiled by Bloomberg. Garmin said earnings in 2011 will be within a range of $2 to $2.15 a share, down from a forecast of $2.25 to $2.50 and less than the average estimate of $2.44.
Garmin, which competes with Amsterdam-based TomTom NV, aims to get more revenue from maps, services and built-in systems in cars and global positioning systems for bicyclists and golfers amid a slowdown in sales of portable navigation devices for vehicles.
The automotive division posted a 19 percent drop in revenue because of “significant” volume declines of portable navigation devices in North America, which overwhelmed growth in installations of in-vehicle systems, Garmin said.
Garmin fell as much as 5.6 percent to $29.76 and was down 2.5 percent as of 9:55 a.m. in Nasdaq Stock Market trading in New York. That propelled the stock to a 3.1 percent drop this year.