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| Statement |
|---|
| Diagnostics has benefited hugely from all the additional Panther placements |
| We continue to feel very good about our business regardless of how they go |
| Our fourth quarter capped off a tremendous year where we continued our track record of success, strengthened our business, and delivered on our commitments |
| In 2023, quite frankly, we delivered some pretty exceptional organic growth rates, which were far above our longer-term targets |
| But I think we feel really good about where we sit |
| In the end, we delivered more, growing annual organic revenue ex-COVID in the mid-teens at 15.6%, with every division growing north of 13% and international growth just above 20% |
| Staying in diagnostics, our cytology and perinatal business increased 1.3% in our fourth quarter, a solid result following outsized growth in our preceding third quarter due to the timing of certain larger orders |
| At the same time, our balance sheet remains incredibly strong and we have the financial flexibility to grow our business for the long term |
| For fiscal 2024, we are confident in our ability to deliver against our 5% to 7% ex-COVID long-term organic growth target, even against significant comps, one less selling week, and a challenging macro environment |
| I think we never want to over-hype anything, but we've got some neat things coming both, particularly organically in the breast health business, you know, diagnostics obviously, BV/CVs off to a tremendous start and, we're excited by that organic thing |
| And finally, in our skeletal business, fourth quarter revenue of $28 million was also strong, increasing 15.9% |
| As Steve highlighted, growth continues to be driven by increasing Panther utilization, turbocharged by a much larger install base, and strong performance from biotherapeutics |
| For the year, molecular posted very strong global growth of 18.9% ex-COVID |
| Interventional breast also posted a strong quarter, growing in the low double digits |
| We are pleased the division's gantry recovery is tracking to our expectations, following the industry's chip supply challenges |
| Organic growth ex-COVID was 10.2%, again driven by our strong molecular business |
| As we have previously discussed, we expect operating margin to improve from this level throughout fiscal 2024 |
| Driven once again by strong contributions from BV, CV/TV, Amgen, and Biotheranostics |
| Gross margin of 60.4% was driven by strong performance in our base business |
| Even more impressive, our base molecular business is now nearly 80%, eight zero percent larger than it was pre-pandemic |
| These are exceptional results in what has been an unpredictable operating environment |
| Organic ex-COVID revenue grew 15.6% and non-GAAP earnings per share were $3.96 |
| So really feeling very good about it |
| I think we just feel great about where we are both in terms of the products we've already got the orders in, as well as continuing to get new orders |
| However, this may not be every division, every quarter, due to strong 2023 comps for certain businesses |
| More importantly, we are pleased our laparoscopic portfolio continues to gain traction |
| And it gives us great confidence as we continue to work through the year |
| So feeling very, very good about that |
| NovaSure will probably be back to flatish to possibly down a touch, but internationally, I think again, we see international being a solid double-digit grower in the year so feeling very good about our positions |
| As you can see, we are very confident in our position for the years ahead |
| Statement |
|---|
| Our customers continue to deal with challenges, sourcing technicians, and the persistent pressure to efficiently manage costs |
| In diagnostics, global revenue of $416.4 million declined 20.6% |
| Therefore, as we move throughout the year and comps normalize, growth rates may recede |
| We estimate the impact of the four less selling days to be a headwind of about 400 basis points to our Q1 results and more than 100 basis points for the full year |
| Okay can we talk about Panther, now that we're at the end of the year, are there any updated utilization stats you can share for the system? And second, the recent placement rates have slowed |
| Two, the divestiture of the SSI ultrasound business, about a $20 million headwind |
| Finally, in surgical, we expect growth rates within our long-term target of 5% to 7% for the full year, but below this level for Q1 |
| One, the headwind of four less selling days in fiscal 2024 compared to fiscal 2023, which is about $40 million |
| As a reminder, due to supply chain challenges in the prior year, our growth rate in fiscal Q1 will likely be above trend |
| I'm always particularly attuned to trying to pay attention to concerns about capital freezes or capital tightening |
| Obviously, you guys -- you had a bit of a backlog with the supply chain issues last year |
| And three, the impact of FX, also about a $20 million headwind |
| So as we previously called out Q3, Q4, our expectation is that would be the trough with respect to operating margins |
| I think we've peaked up here in the last year, and now we will start to bleed that down |
| So I think in 2023 you have baked in something around 200 basis points to 250 basis points of inflationary headwinds outside of that higher semi-chip costs |
| We anticipate the impact of the recently stronger US dollar to be more acutely felt in the back half of our fiscal 2024 |
| And third, in terms of foreign exchange, we are assuming an FX tailwind of approximately $3 million for Q1 and a headwind of about $20 million for the full year |
| Moving down the P&L, fourth quarter operating expenses of $303.7 million decreased approximately 8% |
| And a lot of those still don't fit our criteria |
| And so, and I know you've got a backlog now, but I guess what I'm wondering is, what is the ordering looking like? Because we have seen some kind of mixed signals out there about capital spending at the hospital level |
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