Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How much of the guidance is due to the pushout of orders into the first quarter of 2025 versus orders that simply won't materialize? Did you see any cancellations in the backlog? A: We have not experienced any material cancellations. The biopharma sector has seen cost-cutting and restructuring, which delayed expected recovery. In China, orders have been weaker, with a cumulative effect of about a 20% decline year-over-year. We are beginning to see stimulus orders, which should benefit us in the second half of 2025. (Frank H. Laukien, CEO)
Q: What gives you confidence in above-market growth and significant margin expansion in 2025 despite current uncertainties? A: We have a strong backlog and are seeing good demand in diagnostics and semiconductor metrology. We expect China stimulus orders to benefit us in the second half of 2025. Additionally, our strategic expansions into high-growth markets like multi-omics and lab automation position us well for future growth. (Frank H. Laukien, CEO)
Q: Can you discuss the dilution from acquisitions and the margin impact? Are you still on track to mitigate this dilution? A: Integration activities are on track, and we are progressing well with our management processes. We expect significant margin improvement in the next three years, aiming for breakeven in 2026 for the NanoString and cellular analysis businesses. (Gerald N. Herman, CFO)
Q: How are you thinking about the academic and government market outlook into 2025, especially with the current U.S. political climate? A: The uncertainty around the U.S. elections is causing hesitancy in spending. A split government might avoid extreme moves on taxation and funding, which could stabilize the market. We are monitoring the situation closely. (Frank H. Laukien, CEO)
Q: What is the impact of China's stimulus on your business, and how do you expect it to unfold? A: We are optimistic about receiving China stimulus orders, which should benefit us in the second half of 2025. The stimulus is expected to support academic research and big-ticket items, particularly benefiting our BioSpin business. However, the exact impact is difficult to quantify at this stage. (Frank H. Laukien, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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