Garmin Ltd. (Garmin) reported lower than expected 2Q 08 results. Margins were impacted significantly due to higher Cost of Goods Sold (COGS) and operating expenses during the quarter. The company has revised its revenues and earnings estimates for FY 2008 downwards, reflecting the current macroeconomic downturn leading to slowing growth in the Portable Navigation Device (PND) market. We now remain cautious over the softening end markets for the company which are expected to hinder financial performance going forward. Factoring in the downward trends in PND markets and the company’s guidance, we have revised our estimates downwards and now hold a muted outlook for Garmin. However, the recent significant decline in the NASDAQ common stock makes it an attractive investment opportunity at current price levels.

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