Total Revenue

+2% " " " "

Increased from a prior +5.5% YoY in Q2 2023 " " to +2% YoY, reflecting solid growth in Interventional and Interventional Urology but offset by the Italian payback measure and the termination of the MSA. These headwinds tempered overall revenue growth compared to last year. " " "

EMEA

+5% " "

Rose from about +0.7% in Q2 2023 " " to +5% YoY, driven by higher sales volumes and price increases, despite Italian payback reserves impacting reported figures. The region benefited from stronger geographic availability and utilization but faced currency fluctuations and ongoing macro uncertainties. " " "

Asia

+6% " "

Down from the prior +19.1% growth in Q2 2023 " " due to external factors (e.g., the doctors’ strike in South Korea) and unfavorable currency effects. Despite these pressures, stable sales in China and new product contributions supported continued yet lower growth. " "

Vascular Access

+6% " "

In line with the +6.6% growth in Q2 2023 " " , underpinned by recent product launches (e.g., Arrow VPS Rhythm DLX) and expanded PICC portfolio. Despite inflation and supply chain challenges, the business maintained category leadership in vascular products. " "

Interventional

+12% " "

Higher than the +9.6% increase in Q2 2023 " " , propelled by strong balloon pumps, right heart catheters, and closure products. The continued success of MANTA and favorable market dynamics (e.g., FDA guidance on competing devices) supported robust gains. " " "

Interventional Urology

+13% " "

Rebounded from a -2.3% dip in Q2 2023 " " , thanks to Barrigel contributions (acquired with Palette Life Sciences) and international UroLift growth. Challenges in the U.S. office setting remain, but sales force cross-training and further penetration in Japan helped drive YoY improvements. " " "

Other

-28% " "

Down from +4.8% in Q2 2023 " , largely reflecting the one-time headwinds associated with Italian payback reserves (allocated to past periods) and the ending of MSA revenues. This year-over-year decline is expected to persist once all MSA revenues fully cease. " " "

Operating Income (EBIT)

-10% " " " "

Fell versus the +6.2% rise in Q2 2023 " , driven by higher SG&A expenses, restructuring charges, and reserve adjustments for the Italian payback. Even with a slight gross margin improvement, these costs outweighed benefits, reducing overall operating income. " " "

Net Income

-19% " " " "

Declined compared to the +5.5% gain in Q2 2023 " , impacted by increased interest expense, SG&A costs, and the Italian payback. The pension settlement in the first half of the year also dampened net profitability. " " "

Diluted EPS

-19% " " " "

Lower than the +5.4% increase seen in Q2 2023 " , reflecting weakness in net income, elevated interest expenses, and tax rate pressures. While adjusted EPS saw only a marginal difference YoY, GAAP EPS was impacted more severely by one-time items like the Italian payback reserve. " " "

Revenue Growth (GAAP)

FY 2024

3.4% to 4.4% "

2.9% to 3.4% "

lowered

Revenue Growth (Excluding Italian)

FY 2024

3.85% to 4.85% "

3.4% to 3.9% "

lowered

Gross Margin

FY 2024

60.25% to 61% "

60.5% to 61% "

raised

Operating Margin

FY 2024

26.5% to 27% "

26.75% to 27% "

raised

Net Interest Expense

FY 2024

$81 million "

$78 million "

lowered

Tax Rate

FY 2024

12% "

12% to 12.5% "

raised

EPS

FY 2024

$13.80 to $14.20 "

$13.90 to $14.20 "

raised

Average Weighted Shares

FY 2024

no prior guidance

47.1 million "

no prior guidance

Revenue

Q4 2024

no prior guidance

$809 million to $824 million "

no prior guidance

Intra-aortic balloon pump (IABP) opportunity

Featured consistently from Q4 2023 onward with emphasis on revenue contribution, market share gains, and FDA-driven opportunity. " " " " "

Contributing over $10M to Q4 2024 revenue and expected to continue into at least H1 2025, with strong U.S. quote activity following competitor’s FDA letter. Biggest incremental opportunity in the U.S. " " " " "

Continued bullish driver with ongoing demand, especially in the U.S.

Interventional Access growth

Previously showed strong year-over-year growth, fueled by new product launches (MANTA, Ringer), with Q2 2024 at +13.8%. " " " "

Anticipates an uptick in Q4 2024, mainly tied to balloon pump volumes in the Americas. No significant Q3 impact reported. "

Positive near-term momentum

Palette Life Sciences integration

Discussed each quarter since acquisition, with consistent updates on sales force training, synergy, and revenue outperformance (Q2 guidance raised to $70M-$72M). " " " " " " " " " " " " "

Nearly complete, exceeding initial plans. Guidance raised to $73M-$75M from $66M-$68M, driven by product performance (Barrigel). " "

Ongoing success; delivering synergy and increased revenue outlook

Barrigel product expansion

Consistently highlighted for market expansion and trials. Previous quarters focused on sales force training and strong early adoption. " " " " " " "

Strong sequential revenue, targeting a $100M post-prostatectomy market. Unique NASHA compound with an estimated 1.5-year timeline for expanded indication. " "

High-growth potential, expanding indications

Intraosseous product

Noted each quarter as a contributor to revenue growth in Anesthesia and Vascular Access categories. " " " "

Continues to be a strong growth driver with a new disposable tray format, retaining strong customer loyalty. Competitor’s new device announced. " "

Sustained positive momentum, with new format

Loss of significant OEM customer

Mentioned in Q2 2024 regarding OEM headwinds, but not noted in earlier quarters. "

$14M impact on 2024 revenue, split between Q3 and Q4, after the customer chose to vertically integrate a specific component. Extends through Q3 2025. " " " " "

Negative short-term, OEM business expected to normalize after 2025

UroLift challenges

Discussed each quarter, citing slow office procedural recovery, sales force training impacts, and reliance on hospital site growth. " " " " " " " "

Office site remains challenged, facing reimbursement cuts (another 6% in 2025), plus saline shortages and hurricane disruptions. $11M impact to full year. " " " " "

Ongoing headwinds, especially in office reimbursements

OEM segment growth

Historically grew 5–13% each quarter, driven by microcatheters and catheter extrusions. " " " " "

Up 0.1% year-over-year, softer than expected due to vertical integration by a major customer and some inventory management delays by others. " " " " "

Short-term dip, but mid- to high-single-digit potential remains

MANTA product performance

Consistently cited as a growth driver in Interventional. Achieved solid double-digit growth earlier in the year. " " " " " "

Continues to perform well in TAVR and EVAR, with EVAR offering less price sensitivity. "

Steady positive growth

EMEA region growth

Historically ranging from -2.7% to +9.8% growth, driven by Interventional Urology and product rollouts. " " " " "

3.9% year-over-year to $150.2M, attributed to increased product availability and improving utilization. "

Moderate consistent growth

Restructuring charges and GAAP EPS guidance

Only noted in Q2 2024 as “business as usual,” affecting GAAP EPS. "

No specific mention in Q3.

No updates in the current period

Inflationary pressures

Mentioned each quarter; remains a headwind but easing. Offsetting with pricing and production efficiencies. " " " " " " " "

Still above pre-COVID but moderating, partially offset by cost improvement initiatives. "

Gradual improvement yet still elevated

Vascular Access Endurance catheter recall

Last cited in Q2 2024 as it anniversaried, normalizing comparisons. Also noted in Q1 and Q4 2023 as a negative factor. " " "

No mention in Q3.

Not discussed this period

Ringer catheter pipeline

Previously highlighted as launching with a PTCA indication in Q2 2024, and a vessel perforation trial in progress. " " "

Not mentioned in Q3.

No update in current call

Procedure volumes returning to pre-pandemic

Generally referenced as returning to normal in Q1 and Q4 2023 across certain segments (e.g., cath lab). " " "

Not mentioned in Q3.

No mention this period

Operating margin targets

Consistently discussed as mid- to high-20s range, with improvements driven by scale, cost savings, and mix shifts. " " " " " " "

Raised low end of 2024 guidance to 26.75%-27.0%. Reflected gross margin flow-through and ongoing investments. "

Positive update, continuing upward trend