UPDATE 3-Garmin Q3 results beat Street; cuts '08 outlook

* Q3 EPS, revenue top Street view

* Lowers '08 outlook

* Still sees PND price declines of 25 pct in '08

* Nuvifone on target for launch in H1 of '09

* Shares up 4 percent (Recasts; adds analysts comments, conference call details)

By Purwa Naveen Raman

BANGALORE, Oct 29 (Reuters) - U.S. navigation device maker Garmin (GRMN.O) posted better-than-expected third-quarter results and said its smartphone plans were on track, sending its shares up as much as 9 percent.

The company, however, followed its Dutch rival TomTom (TOM2.AS) in lowering its 2008 outlook as a slowdown in economy and a weak euro are expected to eat into its earnings.

For 2008, Garmin expects adjusted earnings of $3.78 a share, 8.5 percent lower than its earlier outlook. It lowered its revenue outlook by 7.7 percent to $3.6 billion. [ID:nWNAB3690]

"The new targets are not exciting, but they are not awful," said analyst Yair Reiner of Oppenheimer & Co, adding that the targets seemed well within the company's reach.

Garmin, which has been facing inventory issues, said it was taking steps to reduce the levels by about $150 million by the end of the year.

"I think, as they try to reduce inventory they will have some pressure on the margins and overall business," Wedbush Morgan Securities analyst Scott Sutherland said.

The company, which has already repurchased 8.2 million shares, also said it would buy back shares worth $300 million through December 2009.

Garmin's shares were up 4 percent at $22.38 in afternoon trade on Nasdaq. Before Wednesday's gains, they had lost more than 80 percent of their value since touching a 52-week high of $124.75 in October last year.

ACTIVATING NUVIFONE

Garmin, the largest maker of navigation devices in the United States, said nuvifone - which has already been delayed twice due to carrier issues - was on track for launch in the first half of 2009.