And then as we get into a stabilizing of this in the first quarter, that’s where I’m going now. I think folks will decide and move as always. But I don’t think there’s a big holding the breadth and all of a sudden, this will happen. I don’t anticipate that at this point.
Jason Wittes: Okay. That’s very helpful. And maybe just a very quick follow-up. I don’t know what this has been asked in the past, but I assume for the knee products, it’s going to be completely focused on robotics. There’s not going to be manual tools to put them in as well. I just want to clarify that for the new launch.
Daniel Scavilla: Yes, there’s definitely the ability to do it, freehand, do it robotically, do it through navigated procedures. We’re going to give all of the options needed, so the surgeon’s choice to do that, not just a pure robotic move for our implants.
Operator: [Operator Instructions]. Your next question comes from the line of Richard Newitter of Truist Securities.
Samuel Brodovsky: This is Sam on for Rich. Can you hear me okay? .
Daniel Scavilla: Yes.
Keith Pfeil: Yes.
Samuel Brodovsky: Just I know we’re not talking about 2024, but I just wanted to see if we could put a finer point on the EPS side of things. Pretty wide range of consensus right now, looks like about a $0.40 range in 2024 for EPS. I mean is the midpoint of, call it, like $2.60 to $3 directionally a good place to start? And could you just walk us through the puts and takes to bridge sort of the consensus to a net range maybe?
Keith Pfeil: Yes, Sam, I’m not going to give a point of guidance here as it relates to 2024. What I will tell you is we’re excited about where the business is going. There’s lots of products coming. Dan talked about the number of product launches that we had this year. Next year, there’s a lot of capital coming out, cross-selling is going to take effect. Obviously, that’s going to be offset by some sales synergies, but that, to me, points positive and really ties back to the earlier comment that I made that for now, I would focus on our S-4 estimate for revenue. As it relates to cost synergies and achieving synergies, a couple of things that are going to happen. Obviously, you’re going to be looking to eliminate redundant costs.
But one of the things that I talked about was manufacturing and manufacturing efficiencies and supply chain efficiencies. You have to remember that some of those costs will get captured on the balance sheet and roll through the P&L in future periods. The thing you pay attention to is the cash and the cash flow generation of the business as we move forward. That’s about all I would say right now as it relates to 2024. If I think about consensus and consensus estimates, I know there is a wide range out there. I also recall that not all of the models were updated for ’24. So that’s how I’d leave it.
Samuel Brodovsky: Got it. And then I guess on the synergy side, I think one of the areas a little bit less focused on is potential for Trauma or overlap and potential cross-selling there. Could you just sort of tell us how you think about those portfolios getting integrated and where that growth rate can go going forward?
Daniel Scavilla: Thanks, Sam. I’ll take that. So there’s a couple of things. Really, the NSO specialty orthopedics part, is a fantastic add to our bag. That now will allow us to do many things for long bones, its ability with ankle fusion will be amazing with hindfoot. And so that in itself, we see bringing in and bringing to our existing Trauma team that will further accelerate growth and create pathways into accounts. The majority, if not all, of the NuVasive activity is really done through third parties. And so we’re evaluating those distributorships and understanding where they are and making the determination if we want to do anything with our Globus Trauma business that way or not. But really, the goal here and what was a great add was those nails from NuVasive coming into our bag and actually pulling us forward several years in our innovation and ability to address the market.
Operator: And your next question comes from the line of Drew Ranieri of Morgan Stanley.
Andrew Ranieri: Sorry about the background noise here. But could you speak to maybe some of the enabling technology trends that you saw in the quarter? And just as we do think about the merger looking at you’ve had a history of really kind of placing systems via capital versus lease. So you have a significant cross-selling opportunity ahead of you with the NuVasive accounts. So expect a dramatic change in the mix of capital versus leasing looking ahead? And then I have a follow-up.
Keith Pfeil: This is Keith. I’ll take the question. So as I think about Enabling Tech, the market is still — the market still has a lot of appetite for Enabling Tech. I will say that I think capital dollars are perhaps a little bit tighter. So there are more options available to customers in terms of how they acquire the capital. . You commented on leasing. I want to remind everyone that, yes, the majority of our capital purchases are outright sales, net 30 terms. But we have the ability to offer other ways to acquire the capital including rental programs, leases, you name it. So as the market shifts, we have the ability to respond to the market. We’re taking into consideration the point of, obviously, all these NuVasive territories opening up to ourselves to sell the capital.
Dan commented earlier that from a manufacturing perspective, we’ve been building that capital take have it ready because we want to be able to strike as we really roll out the cross-selling plan. But to answer your question, we will be able to address the market to sell the capital in any way that the customer needs to acquire it.
Andrew Ranieri: And Keith, maybe also for you, with breaking out kind of 3 segments now for revenue. Can you just give us a little better sense of maybe how you expect growth to play out in the fourth quarter now that you are breaking out this revenue a little bit of a different way?
Keith Pfeil: The revenue is broken out. So historically, we reported on musculoskeletal and Enabling Technologies. That obviously remains. We added the neuromonitoring services. As I think about Q4, you would expect to see the same seasonality in capital, as you always do Q2 and Q4 are the 2 highest quarters. We don’t expect that to change. And obviously, you would expect to see the seasonal bump that you would experience in spine as we get towards the end of the year and the harvest season.
