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.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| In closing, I hope you can tell that I’m very confident about the future of this organization |
| So healthy market, solid portfolio, great opportunity to leverage the balance sheet |
| We saw a great Q3 performance in recon net of the hip issue OUS |
| Groundbreaking technologies are shaping how procedures are done beyond the backlog and continuing femoral demographics, global demand for treatment is higher than it has historically been This is driven by better clinically reported outcomes |
| The performance is strong and it’s going to continue to get there |
| Number one, really, really pleased with the progress here at Zimmer Biomet really proud of the team and the work that they have done they are doing, and most importantly, the work I know that we are going to continue to do excited about the markets, lots of questions on market dynamics |
| I think the one thing you want to keep in the backdrop is we do believe we can grow earnings, we will grow earnings faster than revenue |
| We feel really good about the optionality we have going forward and we think we can deploy capital to continue to accelerate our growth profile and diversify the company |
| Now that said, the three most compelling priorities within set remain upper extremities shoulder, sports, medicine, and CMFT and those three are performing very nicely |
| With this encouraging market dynamics, sustainable trends, and building on the solid track record of execution that the ZB team has enabled |
| It’s great to be here today to report what it is, another solid quarter of a strong performance while strongly reaffirming our year-end guidance for the year 2023 |
| Even more exciting, as I look forward to our future, I’m more convinced than ever that Zimmer Biomet will continue to lead the way on customer-centric innovation, already a competitive advantage and solid commercial execution, enabling not just the delivery of our mission, but also improving on our other key value creation drivers, those regaining and sustaining top quartile performance |
| And I can tell you that the company’s focus on not just revenue growth, but operating profit and free cash flow generation has been more acute and stronger than it’s ever been |
| So really excited in terms of what we are |
| We continue to show strong clinical efficacy |
| Quite excited about our outlook in the longer-term |
| And quite frankly, we’re going to do that in every year after 2024 and continue to deliver a profile where earnings are growing faster than revenue |
| So again, really proud of what the ZB team has done collectively, again, in the backdrop of still investing for growth, which we’ve been able to demonstrate |
| We believe that’s a great opportunity for us here at Zimmer Biomet |
| We are grateful and we’re stronger because of his leadership |
| So very, very confident that we’re going to continue to perform in the ASC environment |
| We got best-in-class technology so the portfolio is great |
| We got a great cementless Knee that is gaining there very quickly |
| I’m really excited to report that, or the most recent engagement survey, which we completed about six weeks ago delivered the absolute best scores in the history of the company |
| What is the growth profile? The great news is that we convinced that the free cash flow generation is solid |
| And we’re excited about the opportunities that we have in front of us |
| But overall, we feel really good about where we’re ending the second half of this year and where our end markets are |
| However, if that supply picks up and it remediates even faster than it’s already been improving, then as well as better execution on our new products, we could be at the upper end |
| So again, just building off what Ivan said, we feel confident in that |
| And then on top of that, you got great commercial execution with a highly engaged sales force |
| Statement |
|---|
| Tough comps in China and headwinds in Russia disproportionately impacted our OUS hip business |
| Additionally, we had a selling day headwind of about 150 basis points that impacted all regions and product categories at about the same level |
| Global hips declined by 60 basis points with the U.S |
| Secondly, based on where FX rates are today, we’d see some additional pressure from a foreign currency perspective into next year |
| Again, as a reminder, there was about 150 basis points selling day headwind across all categories and regions |
| Despite the strengthening dollar, which we project to be about a $0.04 headwind to fourth quarter earnings |
| Don’t forget that the first semester of 2023, while it had very solid comps, also had pretty challenging dynamics from a supply standpoint |
| So that we always think customer problems and bringing solutions to those problems |
| This OUS hips, I think you called up Russia headwinds |
| Our end markets have never been stronger |
| Secondly, if a patient does lose their weight, and I would say, this is pretty logical and they do become more active, there will be a greater risk for additional joint procedures because there will be injury |
| So again, not really doing hope there |
| Your Q4 implied guidance assumes a deceleration from Q3 |
| And I was hoping you could specifically address the concern I think investors have about growth, especially in the first half of the year with, I’ll do air quotes on this, but tough comps especially in Q1 |
| Obviously, the – to the downside, geopolitical factors continue to be erosive or supply doesn’t continue to, that very positive trend has been on |
| growing 3% and international declining by 4.2% |
| So we’re going to see a little bit of pressure in the fourth quarter, but it’s largely behind us |
| I talked about gross margin next year, stepping down because of the FX hedge gains from this year, not repeating at the same level |
| We done some smaller tuck-ins, so I would expect that the declines that we have seen in the past are going to disappear |
| So we are increasing our outlook for foreign currency to be about a 100 basis point headwind to revenue growth for the full year |
Please consider a small donation if you think this website provides you with relevant information