TomTom shares slide after Q2 sales outlook | Reuters.com
By William Trent, CFA of Stock Market Beat
We have written previously that increasing competition may make things tough for digital navigation leaders Garmin (GRMN) and Dutch rival TomTom (TOM2.AS) this holiday season. That concern assumed no significant other problems, such as those that have surfaced for TomTom:
TomTom shares slide after Q2 sales outlook Reuters.com
Shares of Dutch car navigation firm TomTom fell sharply on Monday after the company said its second-quarter sales would be lower than expected, but some analysts said this was a good opportunity to buy into the stock.
Although the company maintained its full-year sales and profit margin target, other analysts put their estimates and recommendations under review. Shares in TomTom, which is Europe’s biggest producer of portable navigation devices for cars, fell 7 percent to 29.30 euros at 0943 GMT after earlier touching a low of 27.60.
The company said on Friday after the market closed that its second-quarter revenue would be limited to about 275 million euros ($352.1 million) due to problems with the supply of a component for its car navigation devices.
To be clear, product issues such as these could easily be short-term. The company could even make up for the lost sales by pushing them into the following quarter once the parts issue is resolved.
However, any shortage of TomTom products on the shelves will mark an opportunity for all those new rivals to take some market share. And with TomTom giving them an inch…
http://stockmarketbeat.com/blog1/
We have written previously that increasing competition may make things tough for digital navigation leaders Garmin (GRMN) and Dutch rival TomTom (TOM2.AS) this holiday season. That concern assumed no significant other problems, such as those that have surfaced for TomTom:
TomTom shares slide after Q2 sales outlook Reuters.com
Shares of Dutch car navigation firm TomTom fell sharply on Monday after the company said its second-quarter sales would be lower than expected, but some analysts said this was a good opportunity to buy into the stock.
Although the company maintained its full-year sales and profit margin target, other analysts put their estimates and recommendations under review. Shares in TomTom, which is Europe’s biggest producer of portable navigation devices for cars, fell 7 percent to 29.30 euros at 0943 GMT after earlier touching a low of 27.60.
The company said on Friday after the market closed that its second-quarter revenue would be limited to about 275 million euros ($352.1 million) due to problems with the supply of a component for its car navigation devices.
To be clear, product issues such as these could easily be short-term. The company could even make up for the lost sales by pushing them into the following quarter once the parts issue is resolved.
However, any shortage of TomTom products on the shelves will mark an opportunity for all those new rivals to take some market share. And with TomTom giving them an inch…
http://stockmarketbeat.com/blog1/
posted by douglas mcintyre at 9:08 AM
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