“We continue to expect adjusted income tax rate will be 10.5% in 2024”

In context

“guidance outlook for the year, we remain really well positioned to continue to deliver differentiated performance. I thought it would be helpful to remind you of some of the key underlying assumptions behind the guide that remain unchanged from the previous guidance. In 2024, we're assuming just under $100 million of testing revenue and $300 million to $400 million of vaccines and therapies related revenues. In total, this represents a year-over-year headwind of $1.3 billion to $1.4 billion, or 3% of revenue. We assume that FX would be roughly neutral year-over-year to both revenue and adjusted EPS, and we're assuming that the $0.03 FX adjusted EPS beat that we saw in Q2 is offset for the remainder of the year, leading to no change for the year as a whole for FX versus the prior guidance. We continue to expect adjusted income tax rate will be 10.5% in 2024, and for the year we're assuming between $1.3 billion and $1.5 billion in net capital expenditures and free cash flow in the range of $6.5 billion to $7 billion. In terms of capital deployment, we're assuming $3 billion of share buybacks, which were already completed in January. Expect to return approximately $600 million of capital to shareholders this year through dividends and we deployed $3.1 billion to acquire Olink shortly after the Q2 close. Full-year average diluted share count is assumed to be approximately 383 million shares. Finally, I wanted to touch on quarterly phasing to help you with your modeling. Relative to the midpoint of the guide, I recommend modeling Q3 organic revenue growth 1% higher than we delivered in Q2. Also good to model core organic revenue growth in Q3 1%”