Garmin International (NASDAQ: GRMN) is the latest Spotlight Stock from relative strength expert Dan Sullivan. The editor of The Chartist newsletter explains, "Since the time Garmin's GPS handheld units were first used in the Gulf War, the company has build a reputation for innovation, quality products and superior customer service."
He continues, "Its GPS products employs a proprietary integrated circuit and receiver designed to collect, calculate and display location, direction, sped as well as other information depending on the specific use of the customer.
Products, he notes, are sold in more than 100 countries with its consumer products being sold through retails chains, consumer electronic stores, sporting good, marine retailers and catalogs.
The advisor observes, "Second quarter results easily surpassed analysts estimates. Earnings rocketed 75% to 98 cents a share versus 56 cents a share a year ago, well ahead of the consensus forecast of 74 cents a share. Sales leapt 72% to $742 million." The bulk of the growth, he points out, came from a doubling in sales from the GPS automotive/mobile segment.
According to the advisor, the "robust quarter" caused the company to raise the profit outlook for the full-year above previous estimates. The company forecasted earnings to exceed $3.15 per share and revenue to top $2.8 billion, above estimates of $2.92 per share, or revenue of $2.6 billion.
Year-to-date, he notes, the stock has surged higher by 83%. He says, "We think there's a good chance to break above its highs and resume its upward momentum."
Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.
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