GE HealthCare
(Nasdaq: GEHC)
shares are up today on third-quarter results that came in ahead of the consensus forecast.
Shares of GEHC rose 6.3% at $64.14 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 1.1%.
The Chicago-based company posted profits of $375 million in the quarter. That equals 82¢ per share on sales of $4.82 billion for the three months ended Sept. 30, 2023. GE HealthCare recorded a 23% bottom-line slide on sales growth of 5.4%.
Adjusted to exclude one-time items, earnings per share came in at 99¢. That landed 9¢ ahead of expectations on Wall Street. GE HealthCare posted a narrow sales beat, topping projections of $4.8 billion in revenue.
The company maintains its revenue guidance for a range between 6% and 8% for the full year. It increased the low end of its adjusted EPS guidance, now projecting between $3.75 and $3.85. GE HealthCare previously expected between $3.70 and $3.85.
How GE HealthCare posted Q3 sales growth
GE HealthCare reported growth in three out of four of its segments. Imaging revenues increased by 5% thanks to molecular imaging, computed tomography and magnetic resonance performance. The company also cited improvements in supply chain, price and new product introductions.
Patient Care Solutions grew by 9% with growth coming from volume due to supply chain fulfillment improvements and progress on price. Pharmaceutical Diagnostics increased the most — 13% year over year — with pricing actions and volume driving that growth.
The decline for GE HealthCare came in Ultrasound after the company posted double-digit growth in the segment in the prior period. Planned investments, including Caption Health, and inflation led to some margin dips there. Productivity improvements partially offset the drops.
“We delivered another strong quarter of revenue growth with margin performance demonstrating progress on productivity and price,” GE HealthCare President and CEO Peter Arduini said. “Cash performance was strong as we leveraged lean principles to improve inventory management. We remain confident in our 2023 outlook as we continue to innovate for customers and patients.”
