NEW YORK (AP) — Garmin Ltd. shares tumbled to a year low Wednesday after the navigation device maker announced lower-than-expected fourth-quarter results and a weak 2013 outlook, pointing to the continued industrywide decline in demand for automotive and hand-held navigation devices.
For the quarter ended Dec. 29, the Switzerland-based company earned $129.3 million, or 66 cents per share, down 22 percent from $165.6 million, or 85 cents per share, in the same quarter last year. Excluding the effects of foreign currency exchange rates, the company said it posted an adjusted profit of 68 cents per share for the recent quarter.
Revenue fell 16 percent to $768.5 million from $909.6 million.
Analysts, on average, expected a profit of 74 cents per share on $833.7 million in revenue, according to FactSet.
Garmin said the revenue drop reflects a 25 percent decline at the company's automotive and mobile segment to $437 million.
The company said that despite market share gains at that business, it wasn't able to offset the continued industrywide decline in demand. It added that it remains focused on picking up market share in the automotive infotainment industry with the introductions of new devices and systems.
For 2012, the company earned $542.4 million, or $2.76 per share, on sales of $2.72 billion.
For the full year 2013, Garmin said it expects to post an adjusted profit of $2.30 to $2.40 per share on revenue of $2.5 billion to $2.6 billion. Analysts expect earnings of $2.89 per share on $2.77 billion in revenue, on average.
Garmin also said Wednesday that its board plans to recommend an annual dividend of $1.80 per share, unchanged from the current rate and to be paid quarterly. The dividend is subject to the approval of shareholders at the company's annual meeting in June.
Additionally, the board approved a share repurchase program of up to $300 million through December 2014.
Garmin shares lost $3.93, or 10 percent, to $35.31 in heavy midday trading, after dropping as low as $34.65 earlier in the day and marking their lowest stock price since November 2011.