Axsome Therapeutics (AXSM) Q1 2025 Earnings Call May 05, 2025 08:00 AM ET Company Participants Darren Opland - Director of Corporate CommunicationsHerriot Tabuteau - CEONick Pizzie - CFOAri Maizel - Chief Commercial OfficerMark Jacobson - COO & SecretaryMarc Goodman - Senior MD - NeuroscienceAndrew Tsai - SVPHunter Murdock - General Counsel & SecretaryAshwani Verma - Executive Director - SMID Biotech & BiopharmaRaghuram Selvaraju - Managing Director, Healthcare Equity ResearchCerena Chen - VP - Biotech and ...

Recursion Pharmaceuticals (RXRX) Q1 2025 Earnings Call May 05, 2025 08:00 AM ET Company Participants Chris Gibson - Co-Founder & CEONajat Khan - Chief R&D Officer, Chief Commercial Officer and DirectorBen Taylor - CFO & President Recursion UK Chris Gibson Hi, everybody. My name is Chris Gibson, cofounder and CEO of Recursion, and I'm delighted to welcome you to our learnings call this morning. We're gonna go ahead and get started. Perfect. So, of course, important to note that we're gonna be providing forwa ...

Tyson Foods (TSN) Q2 2025 Earnings Call May 05, 2025 09:00 AM ET Company Participants Sean Cornett - VP - Finance & Head of Investor RelationsDonnie King - President and Chief Executive OfficerCurt Calaway - Chief Financial OfficerDevin Cole - Group President - Poultry & Global Business UnitPeter Galbo - Director - Equity ResearchBrady Stewart - Group President, Prepared Foods, Beef & Pork and Chief Supply Chain OfficerKen Goldman - Managing DirectorBenjamin Theurer - Managing DirectorPooran Sharma - Managi ...

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $1.45 billion and non-GAAP earnings per share of $0.55, both exceeding the midpoint of guidance with a non-GAAP gross margin of 40% [6][7][18] - Free cash flow increased by 72% year over year to $455 million, representing 31% of revenue [18][26] - GAAP gross margin was 20.3%, while non-GAAP gross margin was down 530 basis points sequentially and 590 basis points year over year [24][26] Business Line Data and Key Metrics Changes - Automotive revenue was $762 million, a 26% sequential decline, while industrial revenue was $400 million, down 4% sequentially [21][22] - Revenue for the Power Solutions Group (PSG) was $645 million, a decrease of 20% quarter over quarter, and for the Analog and Mixed Signal Group (AMG) it was $566 million, down 7% quarter over quarter [23] - The Intelligent Sensing Group (ISG) revenue was $234 million, a 23% decrease quarter over quarter [23] Market Data and Key Metrics Changes - The company noted early signs of stabilization in the industrial market, particularly in traditional industrial sectors [8][64] - In the automotive sector, leading OEMs are adopting silicon carbide technology, with expectations of significant growth in the Chinese EV market [11][80] Company Strategy and Development Direction - The company is focused on streamlining operations through a "fab right" approach and investing in R&D to enhance gross margins as the market recovers [7][17] - A restructuring initiative led to a 9% reduction in the global workforce, expected to generate approximately $25 million in savings [20] - The company aims to increase share repurchase to 100% of free cash flow for 2025, with $1.5 billion remaining on the repurchase authorization [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in certain markets, particularly industrial, while acknowledging ongoing inventory digestion and customer caution [8][9][64] - The geopolitical environment and tariff policies were highlighted as potential risks, but management expects minimal direct impact on the business [8][105] Other Important Information - The company anticipates Q2 revenue in the range of $1.4 billion to $1.5 billion, with non-GAAP gross margin expected between 36.5% and 38.5% [29] - Capital expenditures for Q1 were $147 million, with inventory down by $164 million quarter over quarter [27] Q&A Session Summary Question: Why is the revenue guidance flat compared to peers? - Management indicated that the difference is due to exposure to different end markets, particularly the automotive sector, which has not yet seen recovery outside of China [33][34] Question: What metrics should be used to think about gross margin? - Management stated that for every point of utilization increase, gross margin improves by 25 to 30 basis points, with expectations for improvement as the market recovers [35][36] Question: What has changed regarding pricing? - Management noted that pricing is being used as a tool to defend market share amid a prolonged downturn, with expectations of low single-digit pricing declines [42][43] Question: Update on the non-core business exit? - Management confirmed plans to exit the non-core business, with approximately $50 million already walked away from in Q1, expecting to exit around $300 million by year-end [52][55] Question: What is the outlook for silicon carbide growth? - Management remains bullish on silicon carbide, expecting to maintain and increase market share, particularly in the EV market in China [56][92] Question: What is the status of inventory management? - Management indicated a disciplined approach to channel inventory, with no significant changes expected in distribution inventory levels [68][70]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $1,450 million and non-GAAP earnings per share of $0.55, both exceeding the midpoint of guidance, with a non-GAAP gross margin of 40% [5][16] - Free cash flow increased by 72% year over year to $455 million, representing 31% of revenue [24][16] - GAAP gross margin was 20.3%, while non-GAAP gross margin was down 530 basis points sequentially and 590 basis points year over year [21][24] Business Line Data and Key Metrics Changes - Automotive revenue was $762 million, a sequential decline of 26%, while industrial revenue was $400 million, down only 4% sequentially [19][20] - Revenue for the Power Solutions Group (PSG) was $645 million, a decrease of 20% quarter over quarter, and for the Analog and Mixed Signal Group (AMG) it was $566 million, down 7% quarter over quarter [20] - The Intelligent Sensing Group (ISG) revenue was $234 million, a 23% decrease quarter over quarter [20] Market Data and Key Metrics Changes - The company noted early signs of stabilization in certain parts of the industrial market, with traditional industrial segments starting to recover [6][60] - Medical and Aerospace and Defense revenues increased sequentially, while AI data center revenue more than doubled year over year [8][19] Company Strategy and Development Direction - The company is focused on streamlining operations through a "fab right" approach and investing in R&D to deliver differentiated products [5][6] - The company aims to increase share repurchase to 100% of free cash flow for 2025, with approximately $1.5 billion remaining on the repurchase authorization [17][16] - The company is committed to building a solid foundation for future growth, particularly in the silicon carbide market, which is expected to ramp significantly in the coming years [9][91] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in the semiconductor market, particularly in automotive and industrial sectors [6][60] - The geopolitical environment remains uncertain, but the company expects minimal direct impact from current tariff policies [6][100] - Management anticipates Q2 revenue in the range of $1,400 million to $1,500 million, with non-GAAP gross margin expected between 36.5% and 38.5% [27][28] Other Important Information - The company reduced internal fab capacity by 12% as part of its manufacturing realignment program, which is expected to lower ongoing depreciation costs by approximately $22 million annually [18][19] - A company-wide restructuring initiative led to a 9% reduction in the global workforce, expected to generate approximately $25 million in savings in Q2 [18][19] Q&A Session Summary Question: Why is ON Semiconductor's revenue guidance flat compared to peers? - Management indicated that the difference is due to the specific end markets ON is exposed to, particularly in automotive EVs, which have not yet seen recovery outside of China [30][31] Question: What metrics should be used to think about gross margin moving forward? - Management stated that for every point of utilization increase, gross margin improves by 25 to 30 basis points, with expectations for improvement as the market recovers [32][34] Question: What has changed regarding pricing? - Management noted that the extended downturn has necessitated a more opportunistic pricing approach to defend and increase market share, rather than a return to previous pricing strategies [39][40] Question: Update on the non-core business exit plan? - Management confirmed the plan to exit the non-core business remains, with approximately $300 million expected to be exited this year, depending on market conditions [47][50] Question: Expectations for demand within the automotive segment by geography? - Management highlighted strength in the Chinese automotive market, particularly driven by EVs, with expectations for new models ramping in the second half of 2025 [76][78] Question: What is the outlook for silicon carbide growth? - Management remains bullish on silicon carbide, expecting to maintain and increase market share, particularly in the growing EV market in China [52][91]

Financial Data and Key Metrics Changes - For Q1 2025, the company achieved revenue of $19.5 million, an 11% increase from $17.6 million in Q1 2024 [4][11] - Gross profit margin was reported at 76.1%, consistent with Q1 2024 [12] - GAAP diluted earnings per share increased by 16% to $0.37 from $0.32 in Q1 2024 [13] - Non-GAAP adjusted net income was $5.3 million or $0.42 per diluted share, up 17% from $4.6 million or $0.36 per diluted share in Q1 2024 [14] Business Line Data and Key Metrics Changes - Revenue from IV infusion pump systems grew 16% to $6 million, while disposable revenue increased 23% to $4.9 million [11][12] - Patient vital signs monitoring systems revenue remained steady at $6.5 million [12] - Domestic sales accounted for 82% of total revenue, up from 76% in Q1 2024, with domestic revenue increasing 19% to $16 million [12] Market Data and Key Metrics Changes - International sales declined 15% to $3.5 million [12] - Device revenue increased 9% to $13 million, driven by pump revenue and FMD systems [12] Company Strategy and Development Direction - The company is focused on increasing monitoring sales in 2025, anticipating a decline in pump revenues later in the year [21] - The new 3,870 MRIV pump is expected to be a revenue driver in 2026, with clearance anticipated in mid-2025 [9][10] - The company is nearing completion of a new facility, with full operations expected by July 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the impact of tariffs, noting that only 3% of revenue is connected to high tariff sources [6][7] - The FDA's responsiveness has been positive, with ongoing interactions indicating progress towards device clearance [25][27] - The company expects Q2 2025 revenue guidance of $19.7 million to $19.9 million, reiterating full-year revenue guidance of $78 million to $82 million [10] Other Important Information - Operating expenses were $9.4 million, or 48% of revenue, down from 49% in Q1 2024 [12] - Cash flow from operations was $4.3 million, up 10% from $3.9 million in Q1 2024 [14] Q&A Session Summary Question: Any anomalies in disposable revenue growth? - Management indicated that some backlog was worked down in Q1, contributing to the growth, but expects future growth to align with capital growth [17][18] Question: Confidence in monitoring sales recovery? - Management emphasized efforts to boost monitoring sales through adjusted compensation structures, with strong bookings already seen in Q2 [20][22] Question: Status of FDA interactions and clearance timeline? - Management noted ongoing interactive questions from the FDA, suggesting a positive sign, with expectations for clarity in the next three to four weeks [24][27]

Zimmer Biomet (ZBH) Q1 2025 Earnings Call May 05, 2025 08:30 AM ET Company Participants David DeMartino - Senior VP of Investor RelationsIvan Tornos - President & CEOSuketu Upadhyay - Executive VP & CFODavid Roman - Managing DirectorTravis Steed - Managing Director - Equity ResearchChris Pasquale - Partner - Medical Devices & SuppliesMatt Taylor - Managing DirectorJoshua Jennings - Managing DirectorJoanne Wuensch. - Managing DirectorCaitlin Cronin - DirectorRichard Newitter - Managing Director Conference Ca ...

Financial Data and Key Metrics Changes - In Q1 2025, Zimmer Biomet reported net sales of $1.909 billion, reflecting a 1.1% increase on a reported basis and a 2.3% increase excluding foreign currency impact [27] - Adjusted earnings per share (EPS) for the quarter was $1.81, down from $1.94 in the prior year, attributed to higher costs and investments [32] - The company generated $279 million in free cash flow, demonstrating robust growth compared to the previous year [26] Business Line Data and Key Metrics Changes - U.S. hips sales grew nearly 4%, while U.S. knees saw a modest growth of 0.2% [29] - The S.E.T. segment grew by 4.9%, with notable growth in CMFT and Sports categories [30] - International sales grew by 3.7%, driven by mid-single digit growth in knees and high-single digit growth in S.E.T. [28] Market Data and Key Metrics Changes - The U.S. market showed a 1.3% growth overall, with hips and S.E.T. driving performance [27] - Internationally, hips grew by 2.4%, with U.S. hips growing at 3.7% and international hips at 1% [29] - The company anticipates a full-year organic constant currency revenue growth of 3% to 5% for 2025 [10] Company Strategy and Development Direction - Zimmer Biomet is focusing on three strategic priorities: people and culture, operational excellence, and innovation and diversification [12] - The company aims to enhance its U.S. market performance through leadership changes and optimizing sales channels [14] - The recent acquisition of Paragon 28 is expected to contribute approximately 270 basis points to sales growth in 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year guidance despite challenges such as tariffs and foreign exchange impacts [34] - The company is optimistic about new product launches and expects second-half growth to be higher than the first half due to favorable comparisons and new product uptake [35] - Management acknowledged the need for improved performance in the U.S. knee segment and is implementing strategies to enhance competitiveness [81] Other Important Information - The company reported a reduction in days on hand inventory from over 400 days in early 2024 to approximately 370 days [15] - The Paragon 28 acquisition was successfully integrated with minimal disruption, retaining key leadership and sales teams [110] Q&A Session Summary Question: Impact of tariffs on EPS and mitigation efforts - Management detailed steps taken to mitigate tariff impacts, including optimizing country of origin and sourcing adjustments, expecting a $60 million to $80 million headwind for 2025 [45][46] Question: Growth expectations and new product impacts - Management indicated confidence in achieving mid-single digit growth in the second half of 2025, driven by new product launches and improved execution [56][57] Question: Performance in ASC versus hospital channels - The company noted that over 20% of U.S. sales now come from the ASC environment, with expectations for continued growth in this area [94] Question: Pricing trends and future expectations - Management expects pricing to remain flat for 2025, with a stable environment compared to historical norms, despite previous fluctuations [68][69] Question: Clarification on the Paragon acquisition integration - The integration of Paragon 28 is progressing well, with all key personnel retained and ongoing product innovations maintained [110]

Financial Data and Key Metrics Changes - U.S. net product revenue for Q1 2025 was approximately $119.7 million, reflecting a 137% increase year-over-year and a 16% increase sequentially from Q4 2024 [14][23] - GAAP net income for the quarter was approximately $5 million, or $0.03 per diluted share [24] - The company closed the quarter with $276 million in cash, cash equivalents, and investment securities, indicating a strong financial position [24] Business Line Data and Key Metrics Changes - BRIONVI U.S. net sales reached nearly $120 million in Q1 2025, exceeding expectations and demonstrating strong adoption by healthcare providers [5][14] - The first three months of 2025 marked the highest total new patient enrollment since the product launch, indicating accelerating demand [15] - Repeat prescriptions have now surpassed new prescriptions for the first time, signaling strong persistence trends [17] Market Data and Key Metrics Changes - The company is capturing approximately 25% of the IV segment market share, with continued growth in patient enrollments [29] - The hospital setting contributed approximately 60% of enrollments in March, the highest percentage to date [16] Company Strategy and Development Direction - The company aims to make BRIONVI the number one prescribed anti-CD20 therapy by focusing on a multi-phase launch strategy and enhancing the patient experience [8][12] - Plans include launching a direct-to-patient television commercial campaign and preparing for lifecycle innovations, including a subcutaneous formulation [19][21] - The company is also exploring new indications for BRIONVI, such as myasthenia gravis, while advancing its CAR T cell therapy pipeline [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth and potential for BRIONVI, citing strong demand and increasing prescriber confidence [20][21] - The company is monitoring potential tariffs but does not anticipate a material impact on gross margins or overall financial performance [26] Other Important Information - The ENHANCE clinical trial is evaluating strategies to simplify the patient experience, with positive feedback on a streamlined infusion regimen [9][10] - The company is on track to launch pivotal trials for both the simplified starting dose and the subcutaneous formulation of BREONVY [52][68] Q&A Session Summary Question: Competitive dynamics with OCREVUS and new patient share - Management noted strong patient enrollments and market share gains, with no impact from OCREVUS observed [29][30] Question: Update on gross to net trends and gross margin - No material change in gross to net was reported, and the pre-launch inventory reserve has been fully depleted, leading to consistent margins going forward [37][38] Question: Subcutaneous BREONVY pivotal trial details - The pivotal trial is expected to include two dosing regimens, with data anticipated later this year [41][42] Question: Physician feedback on the thirty-minute infusion - Positive feedback was received, indicating convenience for infusion centers and patients [49] Question: Phase III trial scale and profitability outlook - The company is not focused on profitability this year but aims to drive cash through the business while meeting revenue targets [54][55] Question: Update on North Carolina manufacturing plant - The North Carolina facility will take several years to reach commercial scale manufacturing [57][58] Question: Product adherence and trends - Persistence trends remain strong and above expectations, with no material changes in switch rates from OCREVUS [63][71]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $383 million, reflecting a reported growth of 3.7% and an organic decline of 3.5% compared to the previous year [7][23] - Adjusted EPS for the quarter was $0.41, down 25% compared to 2024 [23] - Gross margins were 52.2%, down 220 basis points from 2024, impacted by manufacturing variances and increased network optimization spending [24] - Adjusted EBITDA margins were 16.6%, down 290 basis points compared to 2024 [24] - Operating cash flow for Q1 was negative $11.3 million [24] Business Line Data and Key Metrics Changes - Codman Specialty Surgical (CSS) segment reported revenues of $281 million, with a reported growth of 9.4% and an organic decline of 1.1% [25] - Tissue Technologies revenues were $102 million, down approximately 9% on both a reported and organic basis [28] - The ENT business saw approximately $29 million in revenue from the Aclaren acquisition, with organic growth being flat due to supply constraints [25] Market Data and Key Metrics Changes - Global neurosurgery revenues declined 4.7% organically, primarily due to ship holds affecting several product lines [25] - International performance within CSS declined by high single digits, attributed to the timing and duration of ship holds [27] - Sales in wound reconstruction were down due to Integra Skin and ship holds on other products [28] Company Strategy and Development Direction - The company is focused on a turnaround strategy, emphasizing portfolio prioritization and disciplined program management to enhance operational execution [9][10] - A compliance master plan is in place to address quality system regulations and FDA observations, with significant progress reported in site assessments [12][14] - Investments are being made in manufacturing infrastructure to support long-term sustainable growth [8][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the specialized product portfolio despite current challenges [8] - The anticipated revenue headwinds from ship holds are within the assumptions made when setting guidance [20] - The company expects a revenue range of $390 million to $400 million for Q2 2025, reflecting a decline due to ship holds [19][35] Other Important Information - The company identified additional ship holds for certain products, now expecting total ship holds for the year to be between $55 million and $70 million [13][36] - The impact of recently announced global tariffs has been incorporated into the updated 2025 guidance, estimated at approximately $22 million [20][33] Q&A Session Summary Question: Guidance for Q2 and confidence in the second half of the year - Management acknowledged the impact of newly identified ship holds on Q2 guidance but noted that the guidance reflects improved production and normal seasonality [44][45] Question: Tariff impact and mitigation efforts - Management confirmed that several mitigation strategies are being pursued, including tariff exemptions and sourcing optimization, but did not include their impacts in the current guidance [47][49] Question: Demand for private label products - Management anticipates a step-up in private label demand in the second half of the year, although the forecast has been adjusted to reflect a low single-digit decline for the full year [53] Question: Remediation efforts and FDA compliance - Management is on track to complete assessments and remediation plans by year-end, with ongoing dialogue with the FDA regarding compliance [78][80] Question: Impact of ship holds on revenue guidance - Management indicated that the updated guidance allows for additional supply disruptions while still achieving the high end of the revenue range [71]