Summary of Key Takeaways from the Conference Call Industry Overview - The conference call focused on the global healthcare sector, specifically the medical technology industry, with insights from GE Healthcare, Philips NV, and Siemens Healthineers [1][4]. Company-Specific Insights GE Healthcare (GEHC) - **U.S. Market Dynamics**: Strong procedure volumes and ongoing strength in hospital capital expenditure (CapEx) spending, with increased allocation towards imaging equipment. The aged installed base supports a continued replacement cycle [4][5]. - **China Market**: Year-over-year revenue growth of -3% in Q2 2025, indicating a deceleration from -1% in Q1 2025. Market recovery is slower than expected, with extended tender cycles at the provincial level [4][5]. - **Europe**: Secured a 5-year collaboration worth $250 million, with good growth noted in Europe, particularly in response to government changes in the UK and France [4][5]. - **Overall Performance**: Reported a 3% order growth in Q2 2025 and an organic revenue growth of 2%, with an increased outlook for FY25 to approximately 3% [5]. Philips NV (PHG.AS) - **U.S. Market Dynamics**: Experienced double-digit order growth in the U.S. for the second consecutive quarter, with solid trends in patient monitoring [4][5]. - **China Market**: Noted increasing tender activity, although from a low base, with reported order intake growth in Q2. However, there are no indications of a sustained market recovery [4][5]. - **Europe**: Flat growth year-over-year in Q2, but increasing hospital capital expenditure demand is observed [4][5]. - **Overall Performance**: Achieved a 6% order growth in Q2 and expects 1-3% organic revenue growth for the year, with improved margin guidance [5]. Siemens Healthineers (SHLG.DE) - **U.S. Market Dynamics**: Reported a 14% revenue growth in Q3 in the U.S., driven by strong demand for PETNET and photon-counting portfolio [4][5]. - **China Market**: Revenue growth of 6% year-over-year in Q3, but this is attributed to soft comparisons from the previous year. The book-to-bill ratio is around 1, indicating steady but cautious momentum [4][5]. - **Europe**: Noted stable market conditions with a 1% revenue growth in the EMEA region for Q3 [4][5]. - **Overall Performance**: Group revenue grew by 7.6% in Q3, with significant growth in imaging and Varian segments. The FY25 outlook was narrowed to a top-end range of 5.5-6% organic revenue growth [5]. Key Product Launches - **GE Healthcare**: Major product launches in MR, Ultrasound, and PET are expected to accelerate in future quarters [5]. - **Philips NV**: New product introductions generated over 50% of sales, including the Azurion Neuro Biplane R3 and BlueSeal MR system [5]. - **Siemens Healthineers**: Rollout of Photon Counting CT systems and new pricing tiers for the Atellica core lab platform [5]. Additional Insights - **Emerging Markets**: Positive activity noted in emerging markets such as Indonesia and Latin America, with significant partnerships established [4][5]. - **Market Outlook**: Overall, the companies maintain a cautious but optimistic outlook for the healthcare technology sector, with varying performance across different regions [4][5]. This summary encapsulates the key points discussed during the conference call, highlighting the performance and outlook of the major players in the medical technology industry.

Core Viewpoint - GE HealthCare Technologies (GEHC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on an upward trend in earnings estimates [1][2][4]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, influencing their buying and selling decisions, which in turn affects stock prices [3]. Company Performance Indicators - GE HealthCare is projected to earn $4.46 per share for the fiscal year ending December 2025, with no year-over-year change expected [7]. - Over the past three months, the Zacks Consensus Estimate for GE HealthCare has increased by 12.8%, reflecting a positive trend in earnings estimates [7]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9].

Core Insights - The article compares GE HealthCare Technologies (GEHC) and Boston Scientific (BSX) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Both GEHC and BSX currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - The Zacks Rank emphasizes earnings estimates and revisions, which is crucial for identifying potential value opportunities [2] Group 2: Valuation Metrics - GEHC has a forward P/E ratio of 16.89, while BSX has a significantly higher forward P/E of 35.26, suggesting that GEHC may be undervalued [5] - The PEG ratio for GEHC is 2.27, compared to BSX's PEG ratio of 2.53, indicating that GEHC's valuation is more favorable when considering expected earnings growth [5] - GEHC's P/B ratio is 3.35, while BSX's P/B ratio is 6.92, further supporting the notion that GEHC is a better value option [6] Group 3: Value Grades - Based on the valuation metrics, GEHC has earned a Value grade of A, whereas BSX has received a Value grade of D, highlighting GEHC's superior value proposition [6]

Group 1 - GE HealthCare Technologies experienced a significant share price decline of 7.9% as of July 30th, indicating negative market sentiment towards the company [1] - The drop in share price occurred just before the market's final hour, suggesting a potential reaction to management's announcements or market conditions [1]

GE HealthCare (GEHC) reported second-quarter 2025adjusted earnings per share (EPS) of $1.06, which beat the Zacks Consensus Estimate of 91 cents by 16.5%. Also, the bottom line improved 6% year over year. Key Takeaways GAAP EPS in the quarter was also $1.06, up 13.9% from the year-ago level. Revenue Details The company reported revenues of $5 billion, up 3% year over year on a reported basis and 2% organically. The top line beat the Zacks Consensus Estimate by 0.1%. Total company orders increased 3% organic ...

GE HealthCare on Wednesday reported better second-quarter results than analysts had expected and lifted its outlook for the full year. https://t.co/vuhhiOmLis ...

Group 1 - GE HealthCare Technologies reported revenue of $5.01 billion for the quarter ended June 2025, representing a 3.5% increase year-over-year and a surprise of +0.66% over the Zacks Consensus Estimate of $4.97 billion [1] - The earnings per share (EPS) for the quarter was $1.06, compared to $1.00 in the same quarter last year, resulting in an EPS surprise of +16.48% against the consensus estimate of $0.91 [1] - Over the past month, GE HealthCare shares returned +2.3%, while the Zacks S&P 500 composite increased by +3.4%, with the stock currently holding a Zacks Rank 3 (Hold) [3] Group 2 - Revenue from Imaging was $2.2 billion, slightly below the average estimate of $2.21 billion, reflecting a year-over-year decrease of -15.1% [4] - Advanced Visualization Solutions (AVS) generated $1.29 billion, exceeding the estimated $1.27 billion, with a significant year-over-year increase of +56.6% [4] - Revenue from Pharmaceutical Diagnostics (PDx) was $729 million, surpassing the estimated $699.23 million, marking a year-over-year increase of +14.1% [4] - Patient Care Solutions (PCS) reported revenue of $778 million, slightly below the average estimate of $784.09 million, with a year-over-year change of +0.8% [4] - Other revenues were reported at $6 million, significantly lower than the estimated $10.29 million, representing a year-over-year decline of -33.3% [4]

GE HealthCare Technologies (GEHC) Q2 2025 Earnings Call July 30, 2025 08:30 AM ET Company ParticipantsCarolynne Borders - Chief Investor Relations OfficerPeter Arduini - President & CEOJames Saccaro - VP & CFOVijay Kumar - Senior MDJoanne Wuensch. - Managing DirectorDavid Roman - Managing DirectorMatt Taylor - Managing DirectorRick Wise - Managing Director - Medical Technology & SuppliesConference Call ParticipantsLawrence Biegelsen - Senior Medical Device Equity Research AnalystRobert Marcus - Senior Analy ...

Financial Data and Key Metrics Changes - The company reported revenues of $5 billion in Q2 2025, with organic growth of 2%, at the high end of the expected range [10] - Adjusted EPS was $1.06 per share, up 6% year over year, despite approximately $0.08 impact from tariffs [12] - Free cash flow was $7 million, an increase of $189 million compared to the prior year [12] Business Line Data and Key Metrics Changes - Imaging segment organic revenue grew 1% year over year, driven by strong execution in EMEA and the U.S., but offset by challenges in China [14] - Advanced Visualization Solutions saw organic revenue increase of 2% year over year, with EBIT margin up 20 basis points due to productivity and volume [15] - Patient Care Solutions had flat organic revenue year over year, with growth in Monitoring Solutions offset by declines in Life Support Solutions [16] - Pharmaceutical Diagnostics delivered 5% organic growth, although EBIT margin declined 200 basis points due to planned investments and FX headwinds [18] Market Data and Key Metrics Changes - The U.S. market showed robust demand driven by an aging installed base and new clinical products, while Europe experienced recovery in capital decisions [40][41] - Emerging markets, particularly Indonesia and Latin America, showed positive activity, while the recovery in China is taking longer than expected [42] Company Strategy and Development Direction - The company is focused on its Precision Care strategy, with significant wins in enterprise deals and collaborations, including a $90 million deal with Ascension [7][8] - The D3 strategy aims to bring world-class solutions to market, leveraging digital and AI technologies [8] - The company is optimistic about future growth, driven by customer investment and operational execution [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding customer investment and operational execution, despite a mixed macroeconomic landscape [9] - The company raised its organic revenue growth guidance for 2025 to approximately 3%, reflecting positive customer sentiment [24] - Adjusted EBIT margin forecast for the full year is now between 15.2% and 15.4%, an increase from previous guidance [25] Other Important Information - The company announced a share repurchase program of $1 billion and repurchased approximately $100 million of its shares in Q2 [20] - The global tariff environment has improved, with the company implementing mitigation actions to reduce tariff impacts [22] Q&A Session Summary Question: Can you talk about the capital environment across different regions, U.S., Europe, and whether China's bottoming? - Management noted robust replacement cycles in the U.S. due to an aging installed base and strong demand for new clinical products, while Europe is recovering from previous pauses in capital decisions [36][40][42] Question: Can you elaborate on the actions the company is taking regarding tariffs? - The company is implementing immediate no-regret moves and longer-term restructuring of the supply chain to mitigate tariff impacts [46][49] Question: What are the drivers behind the order growth deceleration in Q2? - Management acknowledged that while Q2 order growth was 3%, it was below Q1 expectations, but emphasized the importance of looking at longer-term trends rather than quarterly fluctuations [56][58] Question: What feedback are you hearing from customers regarding Flurcato? - Management reported positive feedback on image quality and progress in expanding manufacturing capabilities, with a focus on improving reimbursement cycle times [64][70] Question: How should we think about the cadence for the rest of the year? - Management expressed confidence in the second half of the year, supported by strong order growth and backlog, with expectations for a stronger fourth quarter [88][90]

Company Performance - GE HealthCare Technologies (GEHC) reported quarterly earnings of $1.06 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and showing an increase from $1 per share a year ago, resulting in an earnings surprise of +16.48% [1] - The company posted revenues of $5.01 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.66%, and up from $4.84 billion year-over-year [2] - Over the last four quarters, GE HealthCare has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - GE HealthCare shares have declined approximately 0.6% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $5.02 billion, and for the current fiscal year, it is $4.02 on revenues of $20.31 billion [7] Industry Context - The Medical - Products industry, to which GE HealthCare belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact GE HealthCare's stock performance [5]