People do a lot of traveling over the holidays, and getting lost in the boonies on the way to see your loved ones would make for a really miserable Christmas. GPS navigation system provider Garmin (NASDAQ:GRMN) was apparently keyed into that deep-seated fear very well during the holiday quarter. Garmin far surpassed Wall Street's expectations with its fourth-quarter earnings report and even ratcheted up its expectations for next year. So, are all systems go for Garmin?

Apparently, the global positioning systems Garmin provides were a great gift-giving idea over the holidays, given that the company credited consumer sales as a highlight for the quarter. Garmin's fourth-quarter profit overall surged 82% to $87.1 million, or $0.80 per share. Revenues increased 45% to $319.3 million. Garmin also ratcheted up its earnings and revenue forecasts for the entire year.

In addition to its success in the consumer segment, Garmin also cited healthy demand in the aviation sector and experienced triple-digit growth in its automotive products unit.

If the fourth-quarter earnings report is any indication, Motley Fool Stock Advisor selection Garmin doesn't have too much to fear from some of its lower-profile competitors like Lowrance Electronics (NASDAQ:LEIX) and TomTom -- not at the moment, anyway. Indeed, it's arguable that Garmin has the marquee name in GPS systems, which are obviously catching on with consumers who can buy them right off the shelf at common shopping stops like Best Buy (NYSE:BBY), Target (NYSE:TGT), and Wal-Mart (NYSE:WMT).

Fool contributor Rich Smith took a look at Garmin yesterday in his Foolish Forecast. He cautioned that investors should take a look at inventories and accounts receivable, which have been burgeoning of late. Inventories for the year are only up 29%, which should assuage concerns in that area. However, accounts receivable increased 55%, so that's still an area that investors should keep a close eye on.

Regardless, there are many elements that speak well of Garmin. It's a high-profile brand in a growing market, it's got a cash cushion of $366.4 million and no debt, and it's a company where top management historically owns sizeable stakes in the business. Garmin puts an emphasis on free cash flow and even breaks that metric out in its earnings release. In 2005, free cash flow increased 68% to $219.9 million.

Garmin is a company whose stock has often been considered pricey. However, given today's earnings report, it seems that some of those concerns may be put to rest. Many signs point to the idea that Garmin is indeed living up to its premium.

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Garmin and Best Buy are Motley Fool Stock Advisor recommendations. To find out David and Tom Gardner's latest picks, get a 30-day free trial by clicking here.

Alyce Lomax does not own shares of any of the companies mentioned.