Is Garmin's Sell-Off After a "Beat and Raise" Quarter an Opportunity?
Typically, when a company beats analyst estimates for quarterly earnings and also raises its guidance, shares rally. That wasn't the case for global positioning system (GPS) device company Garmin (NASDAQ: GRMN) last week.
The company topped the analyst consensus for earnings per share (EPS) by more than 10%, and management boosted its top and bottom-line outlook for the full year. That was the second time in the last two quarters management has increased its guidance. It's worth understanding why investors sold the stock in response to the report, and consider whether this represents a good opportunity to buy into a company that has outperformed the S&P 500 over the last three-year, five-year, and 10-year periods.
Image source: Getty Images.
Source Fool.com
