DHR - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

My name is Ashley, and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to the Danaher Corporation's Third Quarter 2024 Earnings Results Conference Call. [Operator Instructions] I will now turn the call over to Mr. John Bedford, Vice President of Investor Relations. Mr. your begin may you conference. Bedford,

John Bedford

Matt and the Good Officer. I'd the a out and and note like joining Vice on that containing www.danaher.com details future and the Investors on portion measures of are to relating of Investors audio point our for Earnings. The G and historical all the available With website, section the this Quarterly of morning, Chief the and anticipated us Financial Officer; on President call everyone, call. archived performance our to be non-GAAP heading today the financial under us Blair, financial Executive Form available will release, call. of be A thanks XXXX. are slide November Chief our McGrew, archived and Executive President today. call, our discussing today's and call, Presentations later Regulation be remain supplementing replay our quarterly section by of also until and until reconciliations SEC earnings website next will heading Events we'll our X, during the other XX-Q, call under presentation information this will required the Rainer

approvals only pending references metrics markets. which XXXX, of devices describe financial regulatory supplemental all presentation, are relate submitted that products also quarter noted, to may impacted in of factors certain During year-over-year applications increases in We metrics certain from third the have will these additional references operations, certain and or impacted to all materials describe the significant in relate and year-over-year. company-specific performance. or to supplemental more we period-to-period the year-over-year available to describe performance. and decreases certain otherwise financial The materials factors that are Unless for and continuing remarks results and

within forward-looking are in in differ developments that do or actual except of date a events our subject to only SEC future. During These Rainer. statements number forward-looking or of the assume we that, federal we laws, uncertainties, might including statements regarding are risks including statements that the and forward-looking filings, update I'd the we as will any may forth forward-looking the the to set law. With occur or make turn results statements and These and statements any securities meaning to believe will materially obligation as required make call, today. anticipate any speak to of made, the not that call over forward-looking from they we by like those statements,

Rainer Blair

today. joining John, Well, the thank call you everyone. on appreciate you, and We us good morning,

earnings especially and bioprocessing continued competitive our with long-term strong Our quarter results with impactful the flow businesses. our expectations. at another per several of our and team new innovations quarter exceptional delivered adjusted we pleased cash We enhanced revenue, Cepheid, all positive with momentum release third the were in net of share advantage coming and ahead in across

flow. of a we for ahead expanded cash the Danaher The future to important sciences solve leader life is years Now has several health a our diagnostics the higher and focused around bright portfolio transformation and patients margins over customers see last in positioned help most growth, challenges the long-term created purpose-built world. impacting for some stronger Danaher.

therapies. time is reduce innovate needed and customers enabling life-changing and more and accurate develop helping faster, deliver to sustainably ability proven diagnoses the to Our cost

and science us our the positions and the value power unique technology Danaher our for shareholders. associates our combination System well portfolio to talented of Business and team, of maximize as customers, seek we the Now our differentiated our

high core core we growth. let's our that, revenue look with markets quarter were single-digit results. were low Geographically, revenues in North Sales XXXX take decline and and Western delivered third including a closer America the in increased mid-single-digit Europe. So mid-single third growth growth billion single-digit in a $X.X China. in single digits markets at X.X% quarter in High-growth developed digits, with low down

adjusted essentially and offset margin per gross the common ratio XXX%. flow billion of flat year-over-year, earnings Adjusted of quarter cost net XX.X%, favorable we income to the in second share impact cash basis and XX.X% and of billion operating innovation $X.X profit in free free cash was year-to-date, was accelerated flow the resulting savings margin profit points $X.XX for net as of initiatives. in of Our investments were diluted generated quarter our year-to-date down XX $X.X conversion a

were down momentum sequential order business improvement bioprocessing, we positive fifth which orders in markets approximately Medical our increased closer the single the up we give flat some encouraged in digits of the with and consecutive low high single our quarter. our at sequentially, results continued to a what digits was portfolio digits. In in year-over-year the color high look you our with ratio quarter today. end across is take improved let's single X.X. Biotechnology our Notably, and book-to-bill saw revenue segment Now and Core business seeing our Discovery on we're bioprocessing and

volumes Now geographically, in to for order markets averages. China, to particularly their by are equipment historical customers continue as primarily therapies normal patterns. are underlying line pharma, antibody grow customers. monoclonal large quarter in conserve continued driven customers in at has ordering with remain more larger the improving orders returning developed to these weak, we capital. Revenue customers In and biopharma saw trends growth as and manufacturing activity levels our was Production CDMO who

this a environment, moving our steadily continue programs inventory and throughout continue funding their will rationalize year Now investments. therapeutic smaller underlying the to we're in past they their remain coming as these contrast, the customers quarters. In cautious the improved we've over with seeing demand modest and the same seen level of customers. Despite anticipate destocking at gradual recovery they're from improvement in improvement not performance

we year quarter. of business this revenue core includes And full revenue all Now the core in growth our the fourth in decline high putting this bioprocessing to an single-digit together, low for expect XXXX. continue assumption single-digit

long-term XX comprise the revenues, increasingly which of antibodies, therapies our franchise. moves of top highest area these for the positioned the destocking leading investment We're also and and support well largest us, adoption are yields seeing best-in-class majority increasing today behind customers. scientific well opportunities comprehensive our monoclonal antibodies. With the enhancing on believe portfolio, our accelerated and bioprocessing as future. for efficiencies, remain manufacturing innovation Now we're customers today Monoclonal excited of drugs very focused our services our to Cytiva's about the we're ahead X we revenue-generating into and

digits Now equipment, we the implementation in our saw research by half in are turning and Ongoing the revenue our Life with in in Life line have and instruments a third mid-single with quarter, the year. China. Announced China was more segment. as details market conditions yet first decreased measures in awaiting what Sciences expectations. service, Core driving into of to than in revenue stimulus growth lab is the customers declined still consistent activity on X%, by businesses programs. with largely in collectively Core translated meaningful our activity in capital offset of decline not consumables order these particularly which Sciences

in improvement our in customers to we pharma the of many were and customers, delaying are particularly demand China, among stable, signs meantime, early markets Now are encouraged North our of in relatively purchasing see Outside end biopharma and America. decisions.

accelerate VT a Cydem Sciences screening VT. of Now the automated, system and and the during Cydem cell high-throughput the clone fully process Beckman quarter, introduced complex is Coulter simplify development. line culture designed cell Life lengthy and to

development drug projects. In and power completed quickly. Cydem researchers optimize to line used discovery software enterprise the July, we to the solutions development. the of software of researchers of efficiently advanced samples reduce Genedata's cell a by XX%, most rate their Genedata analyze the interpret R&D automate can enabling complex Now the time in leading enabling acquisition improve promising provider hands-on to harnessing and of processes and clones, by workflow success and VT, workflows more biopharma them up identify and

to we're So welcome innovative team this Science excited Life to our really segment.

offer ready-to-use to clonal IDT's and researchers our core second the VT digits, how of cost-effective development. as examples is history process. In while and throughput the discovery of biology consumables IDT of acquisition of discovery long-term turns declined advance genomics the such to experiments portfolio innovation pace business, the helping accelerate strengthening Now medicine revenue NGS trends help In research customers Rapid antibody great pharmaceutical quarter. low we're and Beckman's expanded the the we IDT of Genedata long allowing drug synthetic turnaround, of the high saw the advantage Genes. These genomic in pursue continuing one both are launch verified community August, competitive key drug development. our our with its the fast quickly are single genes Cydem reasons accelerate

to segment. moving Now Diagnostics increased revenue X%. Core our

volume-based new with partially procurement Beckman cadence up strong recent revenue base recurring high the XXXi introductions up low Our businesses team Beckman revenue by offset single product core the release impact China. by clinical immunoassay of single collectively growth. quarter of this delivered of low Outside new diagnostics demand, product analyzer. and was global digits, with innovation integrated China, and driven DxC Coulter in installed Diagnostics of continued the chemistry was accelerated single-digit digits, their expansion. The

is Now to improve efficiency community laboratory specifically meet workflow unique the hospitals. the as needs low-volume designed DxC XXXi such customers and of

$XXX assays. strength care quarter and throughput in Flu Beckman's Molecular highlights in commitment test season. of portfolio in mid- of revenue Cepheid's X-in-X double was the Cepheid's for RSV. network saw a our customers core a broad-based revenue higher of driven of our both preparation COVID-XX, low, mix to Diagnostics, exceeded by the solutions with expectation Flu we for increased B high for the entire purchasing and approximately serving million upcoming and this as million labs. In health respiratory respiratory volume Favorable $XXX by providing favorable respiratory So part volumes core and comprehensive nonrespiratory digits across A,

than growth of respiratory, the revenue helped in of reagent and Strep, for another season normal the urology quarter nonrespiratory XX% expectation in assays. approximately health Now of Cepheid's based expect mid-teens severity, portfolio, drive increasing on of a more core in and respiratory Outside with full menu we XXXX. respiratory sexual and system A activity including quarter year our $X.X Group adoption growth utilization third of billion

installed customers also for to continue systems alternate add their and We saw as growth, clinics particularly base our throughput care GeneXpert lower in strong instruments a sites.

our who out and Day, differentiated our had standardizing across diagnostics for care like their this of by we Investor you the us where hospital clinical all last of financial allows portfolio. improve customers opportunity networks. I'd outcomes thank to So month showcase to to expansion the joined our

of and execution growth have the DBS-driven profile we years. over and margin the meaningfully the event, how improved During commercial highlighted our several diagnostics franchise innovation last

We uniquely opportunities on replay, the see long-term you I'd positioned diseases infectious such in growth high-value, haven't it watch And diseases, also chance you oncology. about encourage and for high-need to Investor neurodegenerative we if areas talked as the how are Relations had our website. to

expectations at ahead the fourth quarter look the briefly let's and for Now XXXX. year full

the operating and single-digit as percent a full low year the there change full in revenue our no XXXX, in we guidance percent previous to core a profit single-digit decline we quarter, year revenue range adjusted is anticipate For core to reminder, low and of fourth the expect range. margin approximately XX%. In a decline

we quarter XX%. Additionally, adjusted margin approximately of expect profit the operating fourth

So expect with we're the to into seeing trends third we're up, QX. and pleased performance better-than-expected quarter continue wrap our to today

Our team's innovating enabled the the to accelerate growth executing continuing System with us commitment to while results initiatives deliver Danaher and across to strong Business portfolio.

the unique positioning results today. of quarter third also reflect Danaher Our

innovation businesses around that with an that the further end challenges solve long-term competitive some drivers. with patients helping group the world. important our markets customers and portfolio attractive of most We're favorable have is outstanding enhancing impacting health growth advantage secular We of serve

provides we executing ahead, foundation innovate leading our for solid commitment of portfolio, performance. delivering a with long-term the to ability team's this to combination looking financial Danaher So and our System Business powerful believe differentiated proven

I'll And so back with that, John. turn over to call the

John Bedford

Rainer. Operator, formal ready That now Thanks, questions. we're our concludes comments. for

Operator

with take Jefferies. from [Operator first question Instructions] We'll Peterson Tycho our

Tycho Peterson

numbers out I if slow, and a of little you the indicators whether it's any give the funnel mass instrument quarter automation, make ex better, on better Wondering want maybe to little dynamics lab worse side? microscopy bit talk you that a can coming growth probe us instrument bit. and into then instrument leading feel it's just of getting China? And it's spec, the where where about

Matt McGrew

what in on digit Tycho, I'll to probably side? color you on the is. to -- China. low it's mid-single Yes, give give seeing then, the It's we're instrument what want Rainer, the number Matt. you the kind of ex And it

Rainer Blair

absolutely. No, Sure.

to biotech, in in pharma stable yet, North down we're the So in high seen sequentially, see -- inflection improvement, were remains end but especially let's starting we at of that digits. developed if soft, and you would and haven't it's some with early But we there markets, start course, while of those. China, then, say although The relatively America. look an it in signs single markets

see we're academic of to that it On orders there we Europe hasn't details. in the customers North meaningful weaker. But research America side, modestly all continue stimulus, China, back but the aware, translated of wait into stable announced to as those for for really coming with us course,

-- for that details, perhaps they So to those while and purchasing they're delay had. the habits normal tend they waiting might have also

stimulus quarter. up in funding to pick third has yet the So here the

Tycho Peterson

say then the the can kind And rate fourth fourth you on Okay. to we've at numbers 'XX seen peers that is buyout for you're life follow-up. sciences Sciences. well? And yet. run Life Is X% run quarter, about a some process as if we on for year, out anything the kind next don't talk talk of down guidance giving I on for next realistic China But know that then you're want of rate at us you of look street the quarter? for given year your laying the

Rainer Blair

Tycho, do how we're the that here in see we developed markets still to stimulus, while the lines for along we the discussed expect pickup and fourth to whether see be plays stable particularly out can looking in a see quarter China, just I the QX. to

QX how XXXX here to before we're see in looking can China's to out get plays numbers. stimulus So we

to continue to near in activity a at time a level, Now as out to term. stable level, and expect here we see to it that albeit play bioprocessing, more the lower relates there but take we low

Matt McGrew

Yes. to of Maybe up. just follow kind

to and see of the rate high give kind out, of sort build of building important digit before said, anything we've gradual here into an that -- Tycho, what played by-processing overall kind 'XX. for But a we're there I I need in 'XX, think 'XX we're tools, Like the think just seeing do China kind here -- right, of for comment overall on for is for so well 'XX, continue block through for of XXXX. but into to of thought. we that's think Rainer But we stimulus out we exit how QX, for we that's 'XX tools. pretty 'XX. But as us what and seen of QX the talked for single recovery I visibility Danaher like gradual we've kind recovery a plays given heading QX a going said, is for backlog kind about see

Tycho Peterson

I the Okay. that fourth whether guidance, down but reconcile on trying quarter And next single to year then reasonable? Life digit, Science, step-up street low the the was is up is also X%.

Matt McGrew

I Yes. we next year be to there life I mean China sciences. with look stimulus the happens the what will biggest factor for think for as

Operator

Ryskin from question America. next our take Michael We'll Bank with of

Michael Ryskin

that the just bioprocess you've to want exit well, well about had couple follow think last single-digit Revenues actually just growth. feeling sort the and market growth how year X lagged done development, of but rate levels. for last there up you exactly order growth talked Bioprocess on of XXXX on the to about and this I of your recovery, are point consecutive think, gradual you high In there. as have order about, I they've quarters quarters, how

high translate year? to start You hit start translate closer like of where you by to it -- a were as getting of we've would little talked seen lag to over you terms Do of there's think going to you order So is a lag quarter of XQ? couple last seems that into the process revenue, about some in closing? think which you single-digit orders expect, growth next see the and bit obviously. Do that translating you're we quarters

Matt McGrew

you frame. the I exiting digits. high mean at mean XXXX, Yes. in about to think kind but back it's think I growth digits, single year a a step a we're low core single down from be take at you of going and look perfect perspective I you

gradual go. of the year And about the with based think 'XX believe great said, here do about trajectory like in I this going where is of to though. that 'XX, where for what a thinking we low fact the let's as the so I better kind very I do encouraging, the would positive had quarters. But we down it it totality I sort trajectory of perspective that we has of believe. sort to be gotten us what we'll pretty you the last we kind we the do revenue I before on year But But be of kind QX year, goes in that's which we're that as saw continuation next X gradual given think fact of a see recovery way of over a from in 'XX, is see going revenue, digits this exit be that of kind single of mean order recovery, next mind here think

So we're are. very happy with where we

Michael Ryskin

then quantify chance on XXX organic is was in right. And of some respiratory timing. some want in and timing kits of to was All XXX questions, I versus One was purchasing you you Okay. some about can. the that? Cepheid of of guide. the couple know talked I or follow-up. quick if a beat you of a Any think timing ask Do I it that quarter. the that maybe did you could XXX

molecular much the specifically press pull Just trying quarter? And forward testing. market release, to get gaining fourth a out, Cepheid sense in from also that you the called of how was in share

expand there? or share you in you terms specifics that? geographically? on gaining of If are customer could Where Any

Matt McGrew

better of than Mike, to hard was parse how just forward out beat the of to little Yes. we to it's related a the sort much I dollar, versus mean, pull thought.

we into was huge to say not forward that what make the sure into that believe that was there of the to quarter we they due customers, then, to here I anecdotally good wanting probably that from in kind what fourth see might I fourth security that sort the heading think which of is do had would fourth surprise, portion of account But of as we the quarter. a from about look a probably heard supply thought quarter, we we take as guess. did we I

was of to say that. a portion probably beat I'd the significant So related

absolute say it doing think we though been as again, We've As we've very, of probably far statement, the beyond one, shares hospitals continued put as care. drive. point sort base core again, installed into well patient. -- U.S., X That closer it's this as I here I know, continue that the market would are in as settings very entirely that not I'd say, you we've probably U.S., in largely and the I'd I categories. expanded well, an of IDNs has as hospitals as in able the go, in quarter, with that, largely near in would that's to the expect been with other their point-of-care to well

Operator

to move Research. We'll next Wolfe Doug Schenkel with

Douglas Schenkel

I at quick appreciate. of couple X%. growing When which dance XXXX numbers, been I around questions Life X% for growth of core guess a with look and lot that double you bioprocessing sure the kind growing follow-ups. Sciences of is a the I'm question, digits looking There's street

going resembling comps be seems you be to a said haven't And picking you snapback. just then about guys, tough. tend follow-through knowing anything in to unclear. stimulus seems are be activity VBC conservative. to China, You up anything Respiratory

modeling chase, high at things mid the another Am levels, am anything? to But the here missing still the to want street these as numbers missing I to cutting recognizing sit today, anything? to should me. I see you be as quarter? look So we And

Rainer Blair

and that you're here. important a variables book so a QX thinking the here. really out to important that think take to we're in know still come minute. in But It's on a just year to of about how plays it's that's need quick much we look we the don't important. real back to in to order there's I'll bioprocessing. see QX going XXXX, couple trajectory the relate I of next shape Well, missing If those how

by in in bioprocessing backlog growth orders the So continue XXXX more to into fourth is we orders. But what that QX. we core for certainly, expect quarter that single-digit into want momentum we deeply expect here also the fully by and high see seeing supported

to the out So key be of understanding going that's plays in second half for bioprocessing. XXXX how here

Hemisphere see As in regard. straddles we straddles out XXXX. talked there's of is it other about, the in -- as we more And generally, and a the this saw QX. And but ahead expect seen China And been that And Hemisphere, for the indicators of variable lastly, relates know, based not respiratory plays we've need normal for here really in you in some QX as date, see first just this some QX like Southern we on that Northern have Cepheid, to to year anything key respiratory respiratory purchasing and to season. QX. important season do stimulus here more what we how life and to sciences accelerating meaningful we'd here then also to that in the

here to and around all us So we're put update going you January. in then numbers

Douglas Schenkel

that Okay. roughly Super mean at Rainer. XX% on just like from year-over-year. essentially orders over and of of bioprocessing seems the another of up if I of guess book-to-bill we biotech XX% question were this year trying I Like assume and get the for QX accounts look utility metric. year book-to-bill it the at to sales, last follow-up And helpful,

as we're consumable So guess I largely is one I'm it's think is, think a metric at that be convert. there's trying business that longer some than mind point. this others to are math growth if there's not to bioprocessing how think sure important that for about question. But at wondering a I the used quickly more concluding is that we much useful this to. keeping especially assuming it it get I'm taking right, if just in to is would how outlook it's that are And I robust converting because just that return is, this

Matt McGrew

really consumables it's business the said, can in talked But timing being an Yes. reasons run businesses. or and helpful of this and -- I number the book-to-bill kind in past we have be when lots about the shipments book-to-bill of exact interesting hit. historically, the not I traditionally certain to for used think mean, of we've you

So spend here of about, as orders. And perspective, we XX%. from something think but time do said, is a the you book-to-bill our orders in quarter I were the the thinking north not lot we think about of

that is very Now off easy of comp. a

to I think need So a we means. bit restraint what But is of little X of sequential important. growth that have order quarters on

what me we do did think also quarter was, that, we that down see a I this we encouraged it's actually -- gave We I again lot go that of went encouragement typically, QX up seasonality was in QX. some not by from where to this see sequentially. environment, in

so important I And even that's percentages, off low destocking, where quarters The off fact been the that at the order look sequential row, growth about though my an that's think numbers, of we've they're think we've and sort had everything X factor. I on of a rate, important. in coming

we're seen continues. So super think pretty a in gradual we're we've here XXXX. your trajectory for -- not I But yes, heading that factors, and X maybe XXXX what I happy really that, again, to is in us. those with and means we've book-to-bill orders, that think But point, seen into do suspect buildup other critical revenue with what the I of and in I'm really sure that triangulating

Operator

ISI. with Evercore Kumar take from will Vijay We next question our

Vijay Kumar

want genomics segments? maybe editing/writing. you here Rapid you about due past, some and of those launch share about What singles, gene the on ask here, would Gene this expect think sequencing maybe product? spoke in were I I versus you what X this Rapid guess, low I trends to one, is talk Gene gains And mentioned, that to between

Rainer Blair

the on -- less the smaller activity. market's see of We gene reading side house, as customer emerging still see particularly segment, do biotech we in we Vijay. Sure, the the softer

funding customers their those still prioritizing are a project the While bit. improved, quite

seeing bit less consumption in we're a that so area. And

quality and and types very gene on which where very customers with and Rapid that of see said excited of market. time, a deal RNA differentiated is a This guide highly different a coming of genes new CRISPR at the our other turnaround course, Now launch our doing we that's to product solutions to we're whole back that. offer here great story Genes, well. Having a will about editing, and in

expect We that us tailwinds. time provide some over here to

performing we're with is pleased very So here this environment. in how IDT

Vijay Kumar

And one Understood. Matt, maybe, for you.

it down came a margin operating QX sub tad prior. versus assumption, Your

at some or of exit it change for is, we're implications in rate. low as assumption? XXs incremental fiscal think anything I look expenses on 'XX? Is investments looking there change and timing any margins we at if margin And here

Matt McGrew

margin least XX%. change, to be respiratory mean I -- at One, our I full we approximately of some implications margins function didn't XX%, year it's couple will of it. Yes. QX a mean things. approximately I going think revenue to anticipate a lower probably has QX. have we're in in Obviously, that

in of good timing, a better margins. And the probably QX said, cost as thinking as business. than that you of think we some sure that sort we're want opportunity in make end the as year. come up of here the year with into up to head and an I bit of you we bit thinking investments we've here a related the of that do some a sort think of the pretty timing we to the you QX well in those And kind XXs bit thought we add of of sort the the that about quarter, about holding did we full into head year little as impacting quarter. adjusted little little here. all of bioprocessing sort a I we're and margin smartly the be have it in And fourth structure, And we had operating picking of might make

Vijay Kumar

fall implications be margin incremental the the XX% for XX% in to sorry, range? fiscal should should the I'm 'XX,

Matt McGrew

is about going it but talked think, when that perspective Well, operating a I volume, a is like it this to I of the business are should depend mean, low of sort it's where from we've be. kind XXs on environment, Vijay, in margin normal

be where will January we'll function you will and mean, mix, 'XX on that. a get depending of we different. it update sort In I from, comes that but be when it So of volume there,

wait So we'll I'm little about we further get 'XX. bit to that, that's you until have but thinking sort a of give how to

Operator

question Davis with next Melius from our take We'll Scott Research.

Scott Davis

Or You that point such coming guys At and mentioned maybe again back become it small as this the we fast. that piece a does what not customers quarter of the bioprocessing business having smaller customers? what is maybe percent that color small material? is now the where ask kind of question to of way or large it different stop it's it's versus less revenues a

Matt McGrew

of roughly, or market and kind give different smaller Yes. the Scott, because or versus color than smaller we and kind Larger in have is customers. and I exposures earlier Phase mean I customers a trial stage, be little the larger or larger a a world. related have whereas some the gene larger therapies bit to, little typically XX% XX% those more to primarily dynamic the of small of bit customers on probably the smaller of cell think tend III customers instances, later the

differently funding as different. bit They little well. act in the So environment

necessarily the and point. this through it's seeing to just as give to improvement we where there, working are we're an we're kind color environment. It's into orders of I funding revenue trying way at not -- think its in So what seeing

years I And kind When of of last this your give in of with customers. bit a is point, what at business, so that customers believe it that behind at color. But are over those And is stuff largely is was most customers all I I destocking of to larger market. little just to X pain us. on kind back the has our look think, caused the the

It's has here long-term a really the this of business When still digits. has gradual. the think get a it's of that's them. we happened largest look so both stand been of at single is me of outlook happened. the there, why kind though give And the gives little It of It that's we TBD, encouraging but little bit think color I want high reason forward, of lot a the to customers. a of faith we I that on bit and recovery a -- sort as

Scott Davis

of or relates kind or nothing would helpful? as funnel in the your talk about to confidence buyback prepared makes it metrics Okay. Any there That update or we Matt. And size funnel guys, your any or or the around didn't sense, mentioned M&A remarks. be

Matt McGrew

buyback, touch did on the think funnel. Rainer QX. But some give the mean see technically, color -- the real and straddled both that was the and just maybe -- I I'll we you buyback QX quick M&A buyback if -- it can we I funnel Yes. on complete

will, you see it buyback new that's kind just it to, clear, that talked if related if you of QX. is of was a final the So was the it so in was everybody issuance, the in about we what not something pieces, queue,

Rainer Blair

And to Matt. across segments. fairly And Thanks, relates every our the we environment, we active M&A it out of all were we're there cultivating as Scott, as do day, there.

though Our pretty still improving, is to say funnels that environment while fair valuations are are the dynamic. It's elevated.

deals needing our And discipline with so are terms we positioning, about and feel both we're meet. out in sheet, going the attractive course, of great our our to our maintain of that to but there balance assets

attractive company and model Our trifecta market, valuation to the end the framework, as course, then, well. of has of work attractive

are we but still see valuations the active, elevated. So that

Operator

from Souda Partners. question Leerink Puneet next our with take We'll

Puneet Souda

market? just China, wondering of that your think this value-based And elaborate local there? And can China, long-term you does -- uncertainties on point bioprocess on just much the of growth. for right the of market the as bit following the if How segment the competition or for biotech a impact of here important is change growth the baking stimulus? an given much long-term bioprocess specifically XXXX, worldwide view the you China on how just lastly, also for in are pricing? about on off up a we and sort And in What's China the So backdrop things. few jump

those local Just is being has competition some and more in of utilized labs. that emerged local now

Matt McGrew

ramp kind Maybe to in just question, was we of start, take first remind because year EVP, million impact I it up. that. Maybe I'll China around really of wrapped we $XXX think let question your going as Rainer sort third next just starting your that for over to be year years, sort this everybody, assumed to X But bioprocessing. of

Our over be the of would sort that assumptions that, initially next years. were linear X

are VBP the little of in starting end around a this to more here We China year. activity bit at see

months sense have the it like ramping what like does think where of linear next we'll of after looks that better I sort up. couple through So of get is the we look a activity

out the of a the in good think So couple sort number how plays of I number, but rolls next will is determined out still and that be weeks.

Rainer Blair

As in term it relates change execution and in think a we think that we -- need XXXX sort unless bottom, the stimulus to program in through change a to rollout China. I about as the JLP, of expect along see the and we we the as and short of go Puneet, really, material to view in don't stable and bumping China

So the we to for most expect has it China as year been XXXX. to of in continue develop here

there's the just it struggling there. But local and to they to clear least have relates to expensive particularly And that the month. on local are in solution to they're be make out as to the competition biotech, buying Now that certainly, simply enough. there going it have companies we competition, question your survive can to essentially it's of to be many good end

of So Cytiva regulators foremost, in here with and effective sort market. Then really section that international are to and world molecules, targeting have inputs from order that segment the therapeutic to required there's want is solutions multinational tend ourselves sale the from around these they the that's first their make the of comfortable one and companies, to of are to another incredibly drugs. that ensure

it competition. it local relates yes, margin, to the see on there's as local So especially We more would molecules.

Operator

from question Leonard UBS. our next with We'll Dan take

Daniel Leonard

Can do because I wanted a instrument to a trends bit the reporting. equipment to Life and instruments were on I circle equipment in some consumables the have specifically that growth in in what from quarter think you perspective? you back further the Science trends elaborate

Rainer Blair

market about be the So conditions China. half last particularly capital quarter saw and were and first 'XX what just constrained to with spending question, generally. more in The continued of equipment the talk the in in to third to essentially consistent quarter we

constrained consumables research stabilize. facilities and to to environment, in in institutions and and grew service has activity equipment, the contrast Now the started quarter as labs

equipment see to being do are we starting consumables move. but So constrained,

Daniel Leonard

And if that's just our rate a other mix? correct numbers, rounding on run the not you quick it's revenue is versus Abcam? or there's comment the there that at I'm if follow-up, M&A seems or into sure read then Could like if the Rainer. It improving. performance

Rainer Blair

other on right accelerators. course, Abcam. no revenue is working M&A we're There's mix. and into in But course, our of the about. to capabilities positioning the those -- of with And our of great transitioning improve implementing They're the very pulling making now, that course, Danaher, hypothesis talked that cost DBS on growth drive progress actually hard around team that. to drive focus And is we've

the of we long good are And where absolutely meets term, terms we Abcam. expectations, about believe So and our line. both that this with feel we growth very in bottom

Operator

And from Jack Meehan take with Nephron we our final question will Research.

Jack Meehan

XX% quarter in for like my I the To have me, just share shift? of to Diagnostics. any the it have remind diagnostic this could wanted region. then tune all Beckman into in can so? was hear for in thoughts is the this to Rainer, of or done back to would start, dynamics down your ask about to been sales? China or Matt, how Is kind might XX% price can diagnostics I of check math change It of in region? impact in is, about be regional the on great you you And kind just trying And

Matt McGrew

Yes.

the revenue think you're ballpark total I the diagnostics, Diagnostics, that. in China for So on

of was Jack, down overall quarter, That think China most that's double digits. in -- low diagnostics, don't be been which it from that going what as high, to in perspective it was far down of kind probably would Beckman. I was the China down As Diagnostics have

total close sales. So to percent as as your far right, think -- a think of more that's but pretty a number to probably I place I better anchor, is probably

Rainer Blair

there across exception, the businesses. course, high of be growth -- our in of saw here strong at back you revenue one clinical We clinical around in levels. Europe. all we really our then Cepheid a North in performance at world Matt America diagnostic really taking heard to recurring and coming that we businesses, from to diagnostic share with all But saw And believe single-digit

which of is we come hand, other In procurement, brings to see us the volume-based the impact down. what China. On China, back we

We the businesses share sort last comp also in and of had in continue year for high hardware how as Coulter clinical right continue very take now our in Beckman sell-out to down we're develop, volume-based topic were pleased procurement burning with a backlog. to But some we particular, diagnostics diagnostics China. is

Operator

call turn Q&A conclude will session. remarks. this Thank John I'll you, closing and our the for for

John Bedford

around today. all be us joining day We'll the for week. rest you. everybody, of Thank for you, Thank follow-ups

Operator

program. today's conclude you for does participation. your this And you. Thank Thank

You may time. at any disconnect

Danaher (DHR) 22 Oct 242024 Q3 Earnings call transcript