Garmin Ltd. (NYSE:GRMN) Q3 2023 Earnings Call Transcript

Cliff Pemble: Well, I can’t comment on specific features, but we’re constantly working on innovations across our product line. So, I always feel like there’s many more great ideas that we need to be working on and lots of opportunity ahead.

Operator: [Operator Instructions] Your next question is a follow-up from Erik Woodring of Morgan Stanley.

Erik Woodring: I just wanted to ask you, Cliff, because you brought it up earlier, just about your visibility into kind of consumer holiday demand this year. What trends you’re seeing that are emerging that will influence your outlook? And I asked because the guide implies about 10% sequential growth in 4Q for revenue versus normal historical seasonality close to 15% to 20%. So just what the puts and takes are why potentially you might be seeing some subseasonal growth? And if it’s a reflection of the holidays and consumer demand, or if that is the kind of non-consumer pieces of the business?

Cliff Pemble: Yes. I think every year is probably different. As I mentioned earlier, retailers are positive about what they are anticipating for the fourth quarter. So, we’re definitely gearing up for that. And when we provide these estimates, we definitely want to provide estimates that we have high confidence in. And so, that is how we approach the guidance.

Operator: Your next question comes from the line of Ron Epstein with Bank of America.

UnidentifiedAnalyst: A quick question, too, on aviation. Are you guys seeing any changes in demand for biz jet products? I know you guys — in the press release, you said that it was driven by the OEM sales.

Cliff Pemble: Yes. I think all of the people who report business jet activity are definitely saying that activity remains strong. They’re sitting on big backlogs that they’re trying to fill. And they haven’t dramatically increased production rates, meaning that there’s still a large amount of backlog that has to be worked through over the next few years. So, as a result, that market continues to show promise as we work through that. And I would probably leave the forward speculation about aircraft and demand to them. But in general, there seems to be encouraging demand across all business jet platforms and customers still want these products.

Operator: There are no further questions at this time. I will turn the call back to Teri Seck for closing remarks.

Teri Seck: Thanks, everyone, for your time today. Doug and I will be available for callbacks throughout the day and talking to many of you. Have a wonderful day. Bye.

Operator: This concludes today’s conference call. Thank you for joining. You may now disconnect.