It's not just the manufacturing plant, it's the facilities that are feeding those manufacturing plants parts as well.ĭemitri Kalogeropoulos: Yeah, it's been interesting to watch that whole portfolio, like you said, the auto is around 10%. The more complex your product lineup is, the more parts you have, the more challenge that any one of those parts could hold up any number of products. They're more like, what I would say, Nike (NYSE: NKE), with thousands of SKUs versus Apple (NASDAQ: AAPL) with dozens of SKUs. Fitness watches, their adventure category, is their second largest and it'll be interesting as they deal with the supply chain challenges. But you take a look at their investor website: That's really interesting. You mentioned Garmin, the company formerly known for its GPS units. This updated estimates, you cannot necessarily take one to the bank but it's going to have a lot of clarity about the next few months.īrian Withers: Very cool. The company should be able to tell investors a lot about what they expect for the fourth quarter. This is usually a really useful number to have because at this point they're going to have a good idea of what demand the retailers have for a lot of their products, especially now that it's taken a long time for shipping, a lot of these companies have already placed their orders for the holidays. We want to see Garmin making some progress there, and then we we'll get an updated holiday outlook from management. It might come down to which company can produce and execute around those logistics. This is a big one, so it should dramatically improve their ability to manufacture, and so we'll get some updates on that, which is important because in this time right now, looking at a big potential holiday and all these shipping and manufacturing constraints. They're trying to ramp that up really quickly. They've secured another factory in Taiwan, I want to say. Also looking at capacity, three months ago, the CEO was talking about a good problem to have for a company like this is basically they were, I think the quote he said, is bursting at the seams in terms of producing enough product to get it into retailers across their entire portfolio. I'd expect that to happen again this year. They've grown significantly every year for the last six years, revenue. It's a very diverse base there, and typically what will happen is one or two of those areas might be underperforming in a quarter, but others will be outperforming, and that is going to help them have really good growth. They do really big navigation platforms for airplanes and for boating. You've got very expensive, I know they've got like a scuba diving watch that's over $1,000, just high performance, stuff like that. It's not just fitness trackers or smartwatches, they've got a really robust portfolio that spans consumer products like that, fitness trackers, and you've got really high-end smartwatches. A couple of things to watch with Garmin is the portfolio growth, and one thing that really attracts me about this business is that it's not just fitness watches. They're expanding a little bit faster than sales, too, even though earnings will be down around 27% is what Wall Street estimates expected this quarter because of one-time stuff that happened a year ago. That company is growing a little bit faster than that on top of really fantastic growth a year ago. That number is going to be higher once you incorporate things like currency exchange rates. Ticker symbol is GRMN, and we're looking for modest growth here, about 3% % to $1.1 billion. They're going to be reporting in late October. It used to be mostly in the auto industry, but it's made a much bigger portfolio over the last seven or eight years or so. Garmin is known for its GPS navigation devices. *Stock Advisor returns as of September 17, 2021ĭemitri Kalogeropoulos: Garmin. Institutional Distribution Intelligence.Non-Traditional Exchanges & New Markets.Directors’ and Officers’ Questionnaires.