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 |
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| So there's clearly momentum that's building here, both in the top and the bottom lines, and I believe that momentum is going to sustain and continue as we go into 2024 |
| And the momentum we are building positions us well for a strong finish to the year and heading into 2024 |
| As I said in my comments, we've now delivered double-digit organic sales growth here for the past three quarters and forecasting that type of growth again this next quarter EPS contributions and the growth in the base business has increased every quarter, and we've exceeded the expectations we set for the initial guidance of the year |
| Organic sales growth on the base business, which excludes COVID testing, increased double digits for the third consecutive quarter and was led by double-digit growth in all four of our major businesses |
| This acceleration in sales growth is a result of our strong position in attractive growth markets, in conjunction with the additional investments we made across the company during the pandemic |
| So I feel good about delivering that, In 2024, yes, there's a macro environment that's out there |
| With a positive growth outlook for the businesses and the momentum we're building across the portfolio, we are well positioned for a strong finish to the year and heading into 2024 |
| I expect those teams to continue to deliver on their strategies to deliver cost reductions, and then favorable product and portfolio mix, right? So as our faster-growing, higher-margin businesses and new products become a large portion of our overall sales and sales mix |
| But as it relates to all the elements that are directly in our control, I feel very good about it |
| So I'd say, yes, it's a great opportunity |
| Internationally, we continue to deliver well-balanced growth coming from both infant formula products and our PediaSure toddler brand |
| In adult nutrition, growth of 12% was driven by strong demand for Abbott's market-leading Ensure and Glucerna brands across the U.S |
| So we feel good about that |
| This strong performance was broad-based and led by double-digit growth in several markets and therapeutic areas, including cardiometabolic, women's health, and CNS pain management |
| And so that's a proof point there that when you bring in the choice and the option and you put it together with Libre that there's a real strong value proposition to connecting the pump with Libre |
| So both those three markets, U.S., Japan and France are doing very well in terms of basal and basal coverage and providing that kind of tailwind of growth |
| Growth was driven by a continued increase in global demand for routine diagnostic testing and a strong recovery of our blood transfusion testing business following a period of lower plasma donations that occurred during the COVID-19 pandemic |
| In rapid diagnostics, double-digit organic sales growth on the base business benefited from increased demand for respiratory tests in anticipation of an earlier than normal start to the flu season in the Northern Hemisphere |
| So that's very positive |
| So we feel good about our position there |
| I believe this is a $1 billion-plus opportunity for sure, and we're committed to building a real strong position on here with innovation on the product and strong clinical evidence to support it |
| This increase in use or better compliance is a positive sign that these users are taking an even more active role in managing their diabetes |
| But again, I don't -- the fact that we'll probably go through a panel, I still feel very enthusiastic and confident about the opportunity that we have with TriClip |
| In cardiovascular devices, sales grew 10% overall in the quarter, led by double-digit growth in electrophysiology and structural heart |
| And to your point, we saw a nice impact from that basal coverage, especially in the international markets, right? And it's nice to see the international growth accelerate again |
| In structural heart, performance was driven by double digit growth of MitraClip and strong growth from several recently launched new products, most notably Navitor, our latest generation TAVR valve |
| In Rhythm Management, growth was led by double-digit growth in pacemaker sales, led by Aveir, our recently launched leadless pacemaker that can be used for both single chamber and dual chamber pacing |
| And again, that's sequentially better from the previous quarter and sequentially better from the one before that |
| So in summary, this was a very strong quarter with all four major businesses delivering double-digit organic sales growth, excluding COVID testing-related sales |
| Growth rates in the base business have improved every quarter this year on both the top and bottom lines |
| Statement |
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| Turning to our third quarter results, sales decreased 1.5% on an organic basis due to, as expected, a year-over-year decline in COVID testing-related sales |
| The difference is primarily due to lower gross margins on COVID tests due to lower volumes and price compared to our original forecast assumptions and the impact of higher inventory obsolescence as a result of maintaining higher inventory levels throughout the pandemic to help ensure product supply during a time when global supply chains were less predictable |
| On a year-to-day basis, our adjusted gross margin ratio is 55.4% of sales, which is below our original full year guidance of approximately 56% that we provided back in January |
| Clearly, there's going to be some macro environment challenges as companies head into 2024 |
| And losing that amount of muscle mass as a ratio, it can be problematic |
| And one of those being increased loss of muscle mass |
| And then maybe just bigger picture, and I appreciate that everyone in the industry is facing these challenges |
| And those were pretty big headwinds for us in, I'd say, in 2022 and 2023 |
| Seeing a lower freight and distribution |
| So you've seen valuations in medtech, significantly be impacted by the fear, like you said, about the reduction in these market sizes, whether it's going to happen in the next few years or it's going to happen in decades from now |
| Foreign exchange had an unfavorable year-over-year impact of 1.4% on third quarter sales |
| Some of the puts and takes at a high level that we should consider nutrition, tough comps there, should consider as we think about 2024, that would be awesome |
| dollar strengthen somewhat versus several currencies, which resulted in a slightly more unfavorable impact on sales compared to exchange rates at the time of our earnings call in July |
| Yes, I think valuations have come down |
| I think the concerns are overblown and I think in the long term if we want to look out 15 years, 20 years, I mean, I think it's -- I think there's still a lot of question marks there given some of the facts that I've raised |
| I think there's a -- if you think about it long-term here on the bigger picture, I think there's a fundamental mismatch here on revenue and revenue forecasts that we're seeing versus potential impact of patient and patient temps |
| So we'll have to see how -- what other companies report to go to see if we're gaining or losing share right now |
| Yes, there's challenges, but we have a lot to work with |
| And as the COVID testing numbers come down, you get to see that a little bit more now |
| You talked about it with respect to diabetes, but I'd love to just get your thoughts on a broader basis on GLP-1s, and do you see it as a negative, neutral, or positive to your different end markets you participate in over the next five, 10 years |
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