GE HealthCare shares took a hit today despite first-quarter results that topped the consensus forecast.

Shares of GEHC were down more than 9% to $79.83 apiece by afternoon trading today. Some suggest disappointment that the company didn’t raise its guidance as the reason behind that dip. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — fell more than 1%.

GE HealthCare reaffirmed its guidance for 2023 with its sales growth range of 5% to 7% mentioned by Arduini. The company projects adjusted EPS to range between $3.60 to $3.75. BTIG analyst Ryan Zimmerman noted that investors expected a guidance raise. That may impact the reaction on the market.

Additionally, Zimmerman pointed out that investors may look negatively upon a decrease in orders. Combined with the guidance and a “normalized growth cadence,” GE HealthCare could face a “tougher set-up” through the year. He maintained his “Neutral rating.”

First-quarter numbers for GE HealthCare

The Chicago-based company posted profits of $372 million in the quarter. That amounts to 41¢ per share on sales of $4.71 billion for the three months ended March 31, 2023.

GE HealthCare posted a 4.4% bottom-line slide on sales growth of 8.4%. The company touted revenue growth across all segments, while its income slide occurred primarily as a result of interest expense.

Adjusted to exclude one-time items, earnings per share totaled 85¢. That landed 6¢ ahead of Wall Street. GE HealthCare also posted a sales beat as analysts projected revenues of $4.63 billion.

“We saw strong revenue growth across all of our business segments and regions as supply chain challenges eased,” said GE HealthCare President and CEO Peter Arduini. “We continue to expect 5% to 7% organic revenue growth for 2023 given increased fulfillment and commercial execution. Price and productivity had a positive impact on our margin performance, positioning us well as we continue to invest in innovation and growth.”