CLAIM #20732 · DHR (DHR) · 2023Q4 earnings call · Jan 30, 2024 · due Dec 31, 2024
“But we are not assuming book-to-bills go above one in any given quarter.”
Matt McGrew · CFO
In context
“e second half. Like I said before, as we think that North America and Europe destocking is largely behind us after the first half. So, no inflection, sort of just kind of gets a little bit better than where we were. As far as kind of some numbers around that, Dan, maybe start with the backlog. So, we're starting with about a quarter and a half of backlog. That's pretty consistent with where we were in 2018, 2019. So, I think we're back to backlog levels that are, relatively speaking, pretty much in line with history. And then you start with that backlog and add this book-to-bill assumption in there. We are assuming book-to-bills improve slightly, like I said, kind of from the 0.8, 0.85s into the 0.9s. And that those will get a little bit better every quarter, as we build through the year. But we are not assuming book-to-bills go above one in any given quarter. And so that kind of assumes that, we get past the inventory destocking in the first half. The second half gets a little bit better. And that we're kind of exiting here, like I said, the first half will be down mid-teens. Mid-to-high teens for the second half we exit with high single-digits or better without seeing an inflection. And I think maybe, I know that there's been some questions on that second half ramp as well. Maybe just to give people some quantitative numbers on that. So the second half ramp in bioprocess assumed in this guide is about a $250 million year-over-year second half increase. So that's on a, call it a $6.5 billion business. So yes, there is a step up. But I think it's relatively modest on a business with $6 billion to expect that we think we could do a couple hundre”
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SEC filings for DHR ↗ · Claim quote is verbatim from the 2023Q4 earnings call.