But weve got a new class of products, I guess, I would call them the fab five, looking at TriClip, Aveir, Navitor, CardioMEMS and LAA. Were familiarizing the physicians with the product. And we're seeing those impacts across transportation, cost, manufacturing inputs, commodities, etc. Joshua Jennings -- Cowen and Company -- Analyst. During the quarter, we also made leadership changes both at our Sturgis site and in our quality organization, and we concluded a month-long investigation into the accusations that were made by a former employee. So, internationally, I think you saw some similar headwinds there, but I think the biggest headwind for us was China and the lockdowns that occurred there. Great. And we started to set a lot of our portfolios to be able to connect to whether it's consumer electronics or clouds or other elements like that to ultimately be able to empower the consumer and just provide better solutions to ultimately improve outcomes. Yeah, were seeing input costs go up probably more on the commodity side, so impacting EPD, impacting Nutrition, less so in I would say, in Devices and Diagnostics. And as we grow those businesses that will have a positive impact overall on our gross margin profile. Thanks for taking the questions. Now at this point it just shows you are kind of once you get in there and get experience and have an opportunity to drive some deeper penetration, that you can really achieve a strong share position, and were doing that in those early adopter accounts. So thats about $1 billion for the year, so call it maybe 240 probably a little bit more than 240 basis points on the gross margin. Your line is open. Robert, can you talk about how you thought about the 2022 guidance? So with that, we'll wrap up, and thank you for joining us today. If anything, some of them have gotten even better and accelerated. Regarding your question on international, theres a little bit of timing there, I would say. Just a couple. And that helps on the financial modeling and attractiveness side from it, but I would say they probably need to stabilize a little bit these valuations so that you can engage what I would call just meaningful discussions here, and I think as those stabilize, I think you'll see the environment pick up here in terms of M&A, so we're in a good position. And that's all been contemplated and fully funded. We've generated a lot of strong cash flow and, quite frankly, it's been a meaningful step up in that cash flow over the last couple of year and a half or so. Yes. A lot of that has been from the benefit of COVID testing sales, which are at healthy margins and still healthy reinvestment against that. Cases are up, our test sales are actually up, and our tests have done very well from a brand and become somewhat of a preferred format over here. Good morning and . Good morning, and thank you for joining us. Price as of November 7, 2022, 4:00 p.m. Thanks, Scott. Abbott Laboratories (ABT) Q4 2021 Earnings Call Transcript So in summary, despite the challenging environment, we achieved another strong quarter that significantly surpassed expectations, which reflects the strength of our diversified business model and execution. So, that being said, as I said, were going to look at our cost structure. It's de-risk, it's fully funded for long-term growth opportunities, and we've got potential upside as we go into the remainder of the year. We've always said that our business model allows us more opportunities to win during the good times, and makes us more resilient during the tough times. Two product-related questions from me, first I wanted to start with Libre. I talked about this recently. But I just remind ourselves to where we were last year and what we thought was going to happen last year. So there is opportunity there that we're also working on. And our next question will come from Larry Biegelsen from Wells Fargo. We take this matter very seriously, and we're making a number of enhancements to our operations at the impacted manufacturing plant. So, I think this is part of the investments that weve been making clinically to be able to show the evidence on how this benefits a broader population. Robert and Bob will provide opening remarks. Excluding COVID testing sales, worldwide diagnostic sales grew over 8% in the fourth quarter and 13% for the year. So listen, yeah, we're in the beginning here. So there's a lot of uncertainty out there of where numbers should sit and how to start thinking about the business for next year. Good morning, and thank you for taking the questions. All participants will be able to listen only until the question-and-answer portion of this call. Image source: The Motley Fool. Thank you, operator, and thank you for all of your questions. It had to do on share repurchases, use of cash if you're not using it for M&A. That being said, yes, I'd say the level of study, the level of review, the level of analysis on potential targets has definitely increased over the past four, five months here. Regarding nutrition, I think our performance is well aligned to where we planned and where I see us ending up end of the year is ultimately where our forecast -- the forecast that we laid out. And I dont think its unique to us. Id love to hear your thoughts on that opportunity. I saw a nice recovery in the institutional businesses, and our pipeline here that we talked a little bit about is going to sustain that growth acceleration. I guess to Robbies comments in the beginning about how everybody shifting to 2023, and we made some choices and decisions here to be able to prepare us and build our momentum and strengthen our position as we go into 2023. I think you mentioned there, I mean, Q2 last year was a pretty significant revenue for a lot in medtech. And as I said, having that ability to then kind of update the forecast with that COVID number, we will -- we'll let it flow through. And as we drive that growth, thats accretive growth overall to the corporation. I expect the same kind of growth rate that were seeing in EPD. And Id say the currency headwinds are very much kind of in play here for next year, right? We continue to see very strong demand. There's still a lot of opportunity, still a lot of under penetration, whether it's internationally or Type IIs. As my follow-up question in nutrition, one of the things we talked with investors about is how do you think about the recovery in that segment and once your supply is back up? And the initial COVID testing forecast of 2.5 -- I don't expect COVID to simply go to zero starting the second quarter. I don't anticipate having to kind of pay those WIC rebates on competitive product. Thanks for that. Oct 19, 2022 at 8:00 AM CDT Click here for webcast. With that, I will now turn the call over to Robert. Thank you. I'm probably sure there's more that I could kind of rattle off here in terms of devices, so I think the device portfolio looks very strong as we go into next year. And just wondering, you caught a couple of the headwinds that you saw in 2Q for hospitals and the challenges that they're facing to accelerate elective procedure volumes in the second half. In that number we do not have any significant government contracts. I think looking at the market between government contracts and non-government contract is something that we spend a lot of time this year doing, because obviously those government contracts they are high-volume, and they ultimately skew a little bit of kind of the run-rate as were trying to kind of run-rate this, so if you look at our Q4 number, our Q4 number that were forecasting is really what I would call an endemic state, right? So, I think I expect some of those dynamics to play out here in the U.S., and I think, MitraClip is going to do very well. I'll now turn to Nutrition, where, as you know, we initiated a voluntary recall in February of certain infant formula products manufactured at one of our U.S. facilities. Its not as leaner as we would like or as what weve historically had. But so is copper. This transcript is provided as is without express or implied warranties of any kind. Let's use that as a proxy to be in that kind of 3% to 4% range and improving as the quarter has progressed. And then, obviously, a strong U.S. dollar. We take this matter very seriously, and were making a number of enhancements to our operations at the impacted manufacturing plant. ET. Obviously, there's a long way to go, so we need to see how things play out. So that's how I'd characterize our margin. Now, let me, Vijay, I'll take the exchange first EMEA. So, yeah, I've talked about this convergence. Economic, competitive, governmental, technological and other factors that may affect Abbotts operations are discussed in Item 1A, Risk Factors, to our annual report on Form 10-K for the year ended December 31, 2021. And we'll take our last question from Travis Steed from Bank of America. And I'm looking to be able to get a lot of leverage out of those investments that we've made historically, and at the top-line the way it kind of laid out comes through, and the leverage falls through. Returns as of 11/08/2022. We had some costs. Yeah, Libre 3 pricing, Libre 2 pricing, Libre 1 pricing, it's practically all the same, Josh, and the more volume we can get onto Libre 3, the more we can kind of lower those COGS, but we have a parity pricing right now, and we think that that pricing strategy, as I said last year, as the international markets or even in the U.S., people have challenges either with co-pays in the U.S. or with formularies and reimbursement decisions internationally. ET, This Groundbreaking Device Just Keeps Winning for Abbott Labs. Foreign exchange had an unfavorable year-over-year impact of 6% on third quarter sales. Good morning, everyone, and thanks for joining us. Probably a little bit too early right now to talk about that. I'll now summarize our third quarter results for our remaining businesses in more detail before turning the call over to Bob. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Congrats on the quarter and thanks for taking the questions. Listen, I'll finish by saying a little bit how I started. I just think that will have a disproportionate share of that. So I'll just close the call here. Excluding COVID testing-related sales and the U.S. sales associated with the recalled products, Abbott sales increased 6.2% on an organic basis in the second quarter. Our share in those accounts is around 40%. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. So you're trying to find that balance and I'm pretty sure we'll talk about some of the long-term growth opportunities. Just a couple. YouTube, American Consumer News, LLC dba MarketBeat 2010-2022. While this is an important segment, right? Good morning, and thank you for joining us. On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. I think that one of the biggest impacts we have for me as I looked at our portfolio was regarding COVID was not being able to benefit the FMR indication and the NCD. They're starting to have a stronger impact on the portfolio. It sounds like youre going to launch an AID insulin system in Europe with Libre 2 by Q4. I think part of the challenge here is COVID is at play, and as that base becomes smaller than what it is this year, I mean this year we'll probably do very much close to the same amount of COVID test sales that we did kind of last year, but as we move into next year and that becomes smaller than this year, we'll see a little bit of an impact on that overall growth rate, but as I said, I think in Robbie's question I see high single digit growth once you back out of COVID. I mean, I think we talked about how important structural heart portfolio was for us even when we go all the way back to the acquisition of St Jude, and really building this franchise. I think youve kind of highlighted some of the aspects as it relates to our business here. So I think you saw the device portfolio has been going down that path for quite some time now as very pleasantly -- very pleasant to see that start to look not only the cardiovascular side, also in the neuromodulation side. With that, well now open the call for questions. So that's actually looking really nice in terms of the ramp there. And as people tested positive, while they didn't have to go to the hospital and they could just stay at home, that had an impact in some of the procedures that there's a little bit more planning toward.