PREVIEW-Garmin's Q2 seen on track; outlook remains blurred

martes 4 de agosto de 2009 17:02 CEST

* WHAT: Garmin Q2 results

* WHEN: Wednesday: Aug 5

* Q2 expected to be roughly in line

* Q3, Q4 seen to be under pressure

By Savio D'Souza

BANGALORE, Aug 4 (Reuters) - No. 1 U.S. navigation device maker Garmin Ltd (GRMN.O: Cotización) is on track to meet market expectations in the second quarter as personal navigation device (PND) sales pick up.

However, analysts are unanimous in their view that a shrinking market coupled with increased competition will continue to pose difficult questions for the company.

As with most technology products, inventory stockpiles became a big worry for the company but with demand slowly picking up, resellers are gradually getting around to destocking.

"With de-stocking largely behind us, we expect PND unit shipments to be up significantly on a quarter-over-quarter basis despite relatively weak sell-through trends," Thomas Lee of Goldman Sachs said in a note to clients.   Continuación...