Garmin reported third-quarter earnings per share (EPS) ahead of expectations, driven by a 55.9-percent consumer gross margin, according to a research note from Morgan Stanley. Total revenues were up about 43 percent year-over-year, in line with the investment firm’s estimates and reflecting strong demand across all product segments. Total revenues would have been higher if not for manufacturing capacity constraints.

The company’s fourth-quarter estimated guidance is between $.50 and $.54 a share, excluding fixed expenses. The guidance for total revenue is between $200 million and $204 million.

Morgan Stanley’s Benjamin Swinburne told his clients last week he believes Garmin likely is conservative with its guidance due to concerns over its capacity constraints. His forecast is that the company will attain fourth-quarter EPS of $.54 per share on total revenues of $208 million.

(Benjamin Swinburne, Morgan Stanley, 212/761-7527)