Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| Our cardiology group delivered another excellent quarter, with organic sales growth of 11% versus third quarter ‘22 |
| So, we're optimistic about the future that we see a better macro environment for cost of goods in that category, but we're not there yet, is what I would say |
| We're pleased with another quarter of excellent results, with momentum continuing fueled by new product innovation, clinical evidence, and our talented teams across the globe |
| Our year-to-date performance sets us up well to achieve our full-year 2023 adjusted operating margin goal of approximately 26.4%, which represents 80 basis points of expansion versus 2022.On a GAAP basis, the third quarter operating margin was 19.6%, which includes a $111 million credit primarily related to certain IP litigation matters |
| This performance is a testament to our category leadership strategy, focus on innovation, and strong commercial execution |
| So, that team's done a really nice job |
| Q3 adjusted EPS at $0.50 grew 15% versus Q3 ‘22, which exceeds the high end of the guidance range of $0.46 to $0.48 |
| And I would say, the new news here is really just the strength of Japan is excellent in the quarter, and we expect another strong quarter for them in the fourth quarter |
| Asia Pac had another strong quarter this year |
| Regionally, on an operational basis, the US grew 9% versus Q3 ’22, driven by strong performance within our WATCHMAN, EP, endo, and urology businesses |
| So, the team's just done a really nice job of executing and driving our innovation with the launches |
| So, they're doing an excellent job of launching our innovative products, taking share in the more developed western European markets, and also building a pretty significant capability in the appropriate emerging markets in Europe |
| Within the quarter, we saw strong growth in EP, with ongoing momentum and demand for FARAPULSE and POLARx |
| So, we have a scaled EP force that's been trained up now, and what's great to see is they're successfully selling cryo today |
| Japan grew strong double digits in the quarter, with ongoing momentum from new products, most notably AGENT DCB, Rezūm, POLARx FIT, and WATCHMAN FLX |
| Physician demand for our differentiated AGENT DCB remains high, and we've taken a market leadership position within the quarter after launching earlier this year |
| Strong sales performance drove third quarter adjusted operating margin of 26.1%, resulting in a year-to-date adjusted operating margin also of 26.1% |
| And our European team has benefited from the portfolio of having many of the product launches that were talked about for second half of 2024 in the US already in that marketplace |
| In the quarter, urology sales grew 11% organically, with international growth of 18%, fueled by new products and globalization efforts, with all regions outside the US growing double digits |
| In closing, I'm very proud of our year-to-date financial performance, with top-tier organic revenue growth of 12%, adjusted operating margin of 26.1%, and adjusted earnings per share growth of 18% |
| Rezūm had another strong quarter of double-digit growth, backed by long-term clinical data supporting international momentum with a leave nothing behind message resonating in Asia |
| Endoscopy sales grew 11% organically and 12% operationally versus third quarter ’22, broad-based strength across all regions |
| Our single-use imaging and AXIOS technologies continued to perform well, both doing double digits within the quarter |
| Q3 2023 adjusted earnings per share of $0.50 grew 15% versus 2022, exceeding the high end of our guidance range of $0.46 to $0.48, driven predominantly by our strong sales performance |
| As a result of our strong year-to-date adjusted free cash flow generation, we now expect full-year 2023 adjusted free cash flow in excess of $2.4 billion |
| Our Brain franchise grew low double digits in the quarter, with strength from new product launches, including the Vercise Neural Navigator 5 Software, which is our fifth generation DBS programming solution, furthering our leadership in image-guided programming for more streamlined DBS programming in the US |
| We're optimistic about the opportunities ahead of our pain business included in our recent US approval to expand indication of our WaveWriter Alpha SCS system to include DPN, which is expected to launch in early ‘24 |
| Sales from acquisitions and divestitures contributed 90 basis points, resulting in 10.2% organic revenue growth, exceeding our guidance range of 7% to 9% |
| Our LRP goals include growing sales 8% to 10% CAGR over the period, while expanding adjusted rate operating margins by 150 basis points over the three years, with double-digit adjusted EPS growth annually, and improvement of our free cash flow conversion to approximately 70% by 2026 |
| And there are really some very novel things that we're able to do with that system combination that we believe is going to improve physician workflow and hopefully lead to even better patient outcomes with the combined system, even on top of the great outcomes that we saw in ADVENT |
| Statement |
|---|
| Adjusted gross margin for the third quarter was 70.2%, slightly lower than our expectations, primarily driven by foreign exchange |
| You talked about results below expectations in light of competitive dynamics |
| On price, the message has been historically we were kind of a little negative |
| Overall, the market's likely, I don't know, 5% to 6%-ish, and this year we're likely to - in SCS US, likely be below the market |
| The gross margin in the third quarter was a little bit lower than we expected, and it was predominantly driven by FX, that 70.2% |
| So, on the pricing, historically, we've been in that kind of very low single-digit decline for many years |
| And obviously, the conflict in the Middle East has us focused on fuel and oil, as that runs the risk of increasing off of that |
| Third quarter 2023 consolidated revenue of $3,527 million, represents 11.2% reported revenue growth versus third quarter 2022, and includes a 10 basis point tailwind from foreign exchange, which was lower than expected due to the strengthening of the US dollar throughout the quarter |
| Our pain business grew low single digits, driven by spinal cord stimulation sales, which were slightly below our expectations |
| That's been under pressure, as you pointed out |
| And so, they've taken a little bit of market share |
| Just tempering that commentary to say you know what, we might not hit the approaching 71% |
| If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements |
| First of all, I think it's also really important to point out that cardiovascular disease is a global issue, that there is less attribution to obesity in other regions, particularly Asia, making it less amenable to prevention with these drugs, which are frankly also very likely to be less accessible outside of the US |
| As we jump into 2024, what's a good base case? Neutral, again, a little up, a little down |
| So, we still do see impact there |
| I have a question on price-cost |
| I think we all can see that inventories for the sector overall are quite higher than they used to be because of the COVID stresses and strains |
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