GE Healthcare (NYSE:GE) today posted double-digit 3rd-quarter profit growth on a 5.3% top-line gain, even as its corporate parent saw its bottom line plunge more than -20% due to lower energy prices – revenues were off by -25% for GE’s oil-and-gas business.
But the healthcare business posted profits of $717 million, up 10.0% compared with Q3 2015, on sales growth of 5.3% to $4.48 billion. GE said the gains were driven by “strong volume growth and cost productivity partially offset by price,” noting that GE Healthcare’s margins grew by 70 basis points.
Overall profits were down -20.4% to $1.99 billion, or 22 per share, on sales growth of 4.4% to $29.27 billion. Adjusted to exclude 1-time items, profits were $2.40 billion, or 27 per share, a full nickel beneath the consensus forecast on Wall Street. Analysts there were looking for sales of $29.64 billion.
“Our strength as a diverse, digital industrial company continues to enable us to deliver in a slow growth, volatile environment,” chairman & CEO Jeff Immelt said in prepared remarks.
GE narrowed its earnings outlook for the rest of the year, saying it now expects to put up adjusted EPS of $1.48 to $1.52, compared with prior guidance of $1.45 to $1.55. The Boston-based industrial giant also cut its sales outlook, forecasting organic growth of 0% to 2%, down from prior guidance of 2% to 4%.
GE shares were off -1.8% at $28.56 apiece today in late-morning trading.
