The Boston-based company posted losses of $1.2 billion, or 78¢ per share, on sales of $18.6 billion for the three months ended June 30, 2022, for a large bottom-line slide into the red on sales growth of 2.2%.
Adjusted to exclude one-time items, earnings per share were 78¢, 40¢ ahead of Wall Street, where analysts were looking for sales of $17.6 billion.
Despite The Street’s reaction to the company-wide performance, driven by GE’s aerospace segment, the company’s HealthCare arm suffered in the second quarter.
GE HealthCare registered revenues of $4.5 billion, marking a 1.5% uptick year-over-year from 2021. Profits came in at $651 million for an 18.7% bottom-line slide from the same quarter last year.
The company said in a news release that COVID-19’s impact in China and continued supply chain challenges were the driving force behind the business’ performance. Growth was driven by the company’s imaging, ultrasound and healthcare systems services.
Due largely to inflation pressure, GE expects HealthCare profit to be approximately $3 billion in 2022, slightly below the company’s prior outlook. GE expects mid-single-digit revenue growth versus prior guidance of low-to-mid-single digit growth in 2022 in HealthCare.
“We’re building meaningfully stronger businesses as we focus on serving our customers and investing through these constraints,” GE Chair and CEO H. Lawrence Culp said in the release. “We are on track and confident in our plans to form three independent companies positioned to create long-term value.”
GE HealthCare remains on track to spin off as its own company. It will trade under the symbol GEHC on the Nasdaq after the planned completion of the spinoff, scheduled for early 2023.
GE projects company-wide metrics to trend toward the low end of its 2022 outlook, except on free cash flow. Working capital will be pressured as the company looks to protect customers from the impact of supply chain challenges.
Shares of GE were up 5.4% at $72.01 in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was virtually unchanged.
