Garmin reports 3Q results

The strong U.S. dollar negatively affected Garmin during the third quarter.
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The strong U.S. dollar negatively affected Garmin during the third quarter, causing the company to miss analysts’ profit expectations by 4 cents a share.

The Switzerland-based company said it earned a profit of $119.3 million, or 63 cents a diluted share, for the quarter that ended Sept. 26, compared with a loss of $146.8 million, or 76 cents a share, in the quarter a year earlier.

Earnings, adjusted for non-recurring gains, were 51 cents a share, missing consensus analyst estimates of 55 cents a share.

Revenue for the quarter was $680 million, with fitness, outdoor, aviation and marine delivering 61 percent of the total, compared with $706.3 million a year earlier.

The relative strength of the U.S. dollar, compared with other major currencies, negatively affected revenue for the quarter by about $52 million, or 7 percent, the company reported.

Gross and operating margins were 53 percent and 18.5 percent, respectively; gross margin was impacted by a geographic revenue mix shifting toward countries with weaker currencies, relative to the U.S. dollar, and lower average selling prices. Operating margin was affected by investments in research and development and advertising.

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