Garmin Shares Plunged: What You Need to Know (AAPL, GOOG, GRMN)

Garmin Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Garmin (Nasdaq: GRMN ) shares fell 10% early today after the company released earnings that missed expectations.

So What: Revenue fell 11% to $692 million and adjusted earnings per share of $0.70 missed estimates of $0.75. Garmin is also shutting down its smartphone business, which couldn't keep up with Apple's (Nasdaq: AAPL ) iPhone or devices using Google's (Nasdaq: GOOG ) Android operating system.

Now What: A 54% increase in Asian sales couldn't offset an 18% decline in the U.S. market. Even though Garmin doesn't appear terribly expensive at a price-to-earnings ratio around 10, declining sales and profitability leave me unimpressed. I just can't hop aboard a tech company without any creative juice that's lost its competitive edge so quickly.

Interested in more info on Garmin? Add it to your watchlist here by clicking here.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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