GE Healthcare Reports Q2 2024 Results: Revenue Growth Amid China Challenges

GE Healthcare Clocks Q2 Topline Growth Despite China Headwind, Adjusts Revenue Outlook For 2024 - GE HealthCare Techs (NASDAQ:GEHC)

Due to China market headwinds, GE Healthcare expects 2024 organic revenue growth of 1%- 2% year over year. GE Healthcare Technologies Inc GEHC reported second-quarter sales of $4.84 billion, flat year over year and up 1% organically, with positive price and volume. However, it marginally missed the consensus of $4.87 billion. Net income attributable to GE HealthCare was $428 million compared to $418 million the prior year, and Adjusted EBIT was $742 million compared to $711 million. Total company book-to-bill, defined as Total orders divided by Total revenues, was solid at 1.06 times. Total company orders increased 3% organically year-over-year. The company posted an adjusted EPS of $1.00, compared to $0.92 in the prior year, beating the consensus of $0.98. Related: GE HealthCare Taps AWS for Groundbreaking AI Medical Solutions: Details. Imaging segment revenues of $2.6 billion, down 1% Y/Y on the reported basis and flat organically. Ultrasound segment revenues of $823 million declined by 2% (-1% organically). Patient Care Solutions' Revenues are $772 million, flat year-over-year (+1% organically) Pharmaceutical Diagnostics' revenues of $639 million increased by 12% reported and 14% organically. GE HealthCare President and CEO Peter Arduini said, "In the second quarter, we delivered year-over-year sales growth and margin expansion despite headwinds in the China market. We also reported solid orders growth with particular strength in the U.S., as healthcare systems invest in technologies that enhance patient care and improve productivity. We are pleased with our continued progress in advancing our margin goals while continuing our investments for future growth." Guidance: Due to China market headwinds, GE Healthcare expects 2024 organic revenue growth of 1%- 2% year over year versus the prior guidance of approximately 4%. The company expects 2024 adjusted EPS of $4.20-$4.35 versus consensus of $4.27. Price Action: At last check on Wednesday, GEHC stock was up 4.03% to $85.98. Read Next: Supreme Court Backs Pharmaceutical Giants in Iraq Terrorism Funding Case. Photo via Wikimedia Commons Market News and Data brought to you by Benzinga APIs

GE HealthCare Technologies Non-GAAP EPS of $1.00 beats by $0.02, revenue of $4.84B misses by $30M (NASDAQ:GEHC)

GE HealthCare Technologies press release (NASDAQ:GEHC): Q2 Non-GAAP EPS of $1.00 beats by $0.02. Revenue of $4.84B (+0.4% Y/Y) misses by $30M. Revenues of $4.8 billion were flat as reported and up 1% on an Organic basis year-over-year, with positive price and volume Total company book-to-bill, defined as Total orders divided by Total revenues, was solid at 1.06 times. Total company orders increased 3% organically year-over-year. 2024 guidance Organic revenue growth in the range of 1% to 2% year-over-year versus the prior guide of approximately 4%, due to China market headwinds Adjusted EBIT margin in the range of 15.7% to 16.0%, reflecting an expansion of 60 to 90 basis points versus 2023 Adjusted EBIT margin of 15.1%; this compares to prior guidance of 15.6% to 15.9% Adjusted effective tax rate (ETR) in the range of 23% to 25% Adjusted EPS in the range of $4.20 to $4.35 vs. $4.27 consensus representing 7% to 11% growth versus Adjusted EPS of $3.93 for 2023 Free cash flow of approximately $1.8 billion More on GE HealthCare Technologies GE HealthCare: Near-Term Risks, But Some Interesting Longer-Term Opportunities Despite Strong Upside, GE HealthCare Warrants A Downgrade On Guidance Concerns GE HealthCare: A Good Buy At Current Levels GE HealthCare Technologies Q2 2024 Earnings Preview GE Healthcare, Amazon to collaborate on AI healthcare apps

GE HealthCare reports second quarter 2024 financial results

GE HealthCare (Nasdaq: GEHC) today reported financial results for the second quarter ended June 30, 2024. GE HealthCare President and CEO Peter Arduini said, "In the second quarter, we delivered year-over-year sales growth and margin expansion despite headwinds in the China market. We also reported solid orders growth with particular strength in the U.S., as healthcare systems invest in technologies that enhance patient care and improve productivity. We are pleased with our continued progress in advancing our margin goals, while continuing our investments for future growth." Second quarter 2024 total company financial performance Mr. Arduini continued, "The recent Centers for Medicare & Medicaid Services reimbursement proposal has the potential to benefit patients in the U.S. facing cancer, cardiovascular, and neurological diseases. We believe this will unlock the value of our radiopharmaceuticals and PET and SPECT scanners, ultimately enabling more precise diagnostic and treatment planning for patients. We're optimistic about our pipeline of innovation and ability to bring differentiated solutions to market." Today, the Company updates full-year 2024 guidance for Organic revenue growth* and Adjusted EBIT margin* and reaffirms other metrics as follows: The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP Financial Measures in Outlook section below for more details. Financial rounding Certain columns and rows in this document may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts. Non-GAAP Financial Measures The non-GAAP financial measures presented in this press release are supplemental measures of GE HealthCare's performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results, and assess its future prospects. When read in conjunction with the Company's U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in GE HealthCare's underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Descriptions of the reported non-GAAP measures are included below. The Company reports Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of the Company's established, ongoing operations, as well as provide insights into overall demand for its products and services. To calculate these measures, the Company excludes the effect of acquisitions, dispositions, and foreign currency rate fluctuations. The Company reports EBIT, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, Adjusted net income margin, and Adjusted earnings per share to provide management and investors with additional understanding of its business by highlighting the results from ongoing operations and the underlying profitability factors, on a normalized basis. To calculate these measures the Company excludes, and reflects in the detailed reconciliations below, the following adjustments as applicable: Interest and other financial charges - net, Net (income) loss attributable to noncontrolling interests, Non-operating benefit (income) costs, Benefit (provision) for income taxes and certain tax related adjustments, and certain non-recurring and/or non-cash items. GE HealthCare may from time to time consider excluding other non-recurring items to enhance comparability between periods. Adjusted EBIT margin and Adjusted net income margin are calculated by taking Adjusted EBIT, or Adjusted net income, divided by Total revenues for the same period. The Company reports Adjusted tax expense and Adjusted effective tax rate to provide investors with a better understanding of the normalized tax rate applicable to the business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. The Company may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted effective tax rate is Adjusted tax expense divided by Income before income taxes less the pre-tax income adjustments referenced above. The Company reports Free cash flow and Free cash flow conversion to provide management and investors with an important measure of the ability to generate cash on a normalized basis and provide insight into the Company's flexibility to allocate capital. Free cash flow is Cash from (used for) operating activities including cash flows related to the additions and dispositions of property, plant, and equipment ("PP&E") and additions of internal-use software. Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the capital required for debt repayments. Free cash flow conversion is calculated by taking Free cash flow divided by Adjusted net income. Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. The detailed reconciliations of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure are provided below, and no single financial measure should be relied on to evaluate our business. GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, and Free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. GE HealthCare does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or dispositions, timing and magnitude of restructuring activities, and revaluation of strategic investments, amongst other items. The timing and amounts of these items are uncertain and could have a substantial impact on GE HealthCare's results in accordance with GAAP. Key Performance Indicators Management uses the following metrics to provide a leading indicator of current business demand from customers for products and services. Conference Call and Webcast Information GE HealthCare will discuss its results during its live earnings call today, July 31, 2024 at 8:30am ET. The webcast and accompanying slide presentation containing financial information can be accessed by visiting the investor section of the website at https://investor.gehealthcare.com/news-events/events. An archived version of the webcast will be available on the website after the call. Forward-looking Statements This release contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as "will," "expect," "may," "would," "could," "plan," "believe," "anticipate," "intend," "estimate," "potential," "position," "forecast," "target," "guidance," "outlook," and similar expressions. These forward-looking statements may include, but are not limited to, statements about our business and expected financial performance, financial condition, and results of operations, including revenue, revenue growth, profit, taxes, earnings per share, and cash flows, and the Company's outlook; and the Company's strategy, innovation, and investments. These forward-looking statements involve risks and uncertainties, many of which are beyond the Company's control. Factors that could cause the Company's actual results to differ materially from those described in its forward-looking statements include, but are not limited to, operating in highly competitive markets; the Company's ability to successfully complete strategic transactions; the actions or inactions of third parties with whom the Company partners and the various collaboration, licensing, and other partnerships and alliances the Company has with third parties; demand for the Company's products, services, or solutions and factors that affect that demand; management of the Company's supply chain and the Company's ability to cost-effectively secure the materials it needs to operate its business; disruptions in the Company's operations; changes in third-party and government reimbursement processes, rates, contractual relationships, and mix of public and private payers, including related to government shutdowns; the delayed China stimulus and the ongoing anti-corruption campaign; the Company's ability to attract and/or retain key personnel and qualified employees; global geopolitical and economic instability, including as a result of the conflict between Ukraine and Russia, the conflict in Israel and surrounding areas, and the actions in the Red Sea region; public health crises, epidemics, and pandemics and their effects on the Company's business; maintenance and protection of the Company's intellectual property rights, as well as maintenance of successful research and development efforts with respect to commercially successful products and technologies; the impact of potential information technology, cybersecurity or data security breaches; compliance with the various legal, regulatory, tax, privacy, and other laws to which the Company is subject, such as the Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws globally, and related changes, claims, inquiries, investigations, or actions; the Company's ability to control increases in healthcare costs and any subsequent effect on demand for the Company's products, services, or solutions; the impacts related to the Company's increasing focus on and investment in cloud, edge, artificial intelligence, and software offerings; the impact of potential product liability claims; environmental, social, and governance matters; the Company's ability to operate effectively as an independent, publicly-traded company; and the Company's level of indebtedness, as well as its general ability to comply with covenants under its debt instruments and any related effect on the Company's business. Please also see the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission and any updates or amendments it makes in future filings. There may be other factors not presently known to the Company or which it currently considers to be immaterial that could cause the Company's actual results to differ materially from those projected in any forward-looking statements the Company makes. The Company does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation. About GE HealthCare Technologies Inc. GE HealthCare is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator, dedicated to providing integrated solutions, services, and data analytics to make hospitals more efficient, clinicians more effective, therapies more precise, and patients healthier and happier. Serving patients and providers for more than 125 years, GE HealthCare is advancing personalized, connected, and compassionate care, while simplifying the patient's journey across the care pathway. Together our Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics businesses help improve patient care from diagnosis, to therapy, to monitoring. We are a $19.6 billion business with approximately 51,000 colleagues working to create a world where healthcare has no limits.