Garmin is a company that makes things like watches and tools to help people find their way. They had a really good first part of the year, selling more of their products than they did last year. People liked their special watches and other gadgets a lot, so they made more money too. Read from source...
- The article title is misleading and overstates the demand for Garmin's advanced wearables. It implies that there was a high level of surprise or unexpectedness in the Q1 profit growth, which is not supported by the data presented in the article.
- The article does not provide any evidence or analysis of how the demand for advanced wearables has changed over time or why it is increasing. It relies on vague terms like "strong demand" and "growth across all categories" without explaining what these mean or how they are measured.
- The article does not mention any challenges, risks, or threats that Garmin may face in the future regarding its wearables business, such as competition, regulation, or customer satisfaction. It presents a rosy picture of the company's performance without acknowledging any potential issues or limitations.
In my opinion, Garmin is an attractive investment opportunity based on the following factors:
- Strong revenue growth across all segments, especially Fitness and Outdoor
- Improved gross margin and operating margin
- Positive free cash flow generation