Earnings Sentiment

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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Sentiment Distribution


Earnings Call Transcript Word Cloud


Bullish Statements during Earnings call

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

Bearish Statements during earnings call

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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