GE HealthCare Technologies (GEHC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this medical technology company have returned -6.2% over the past month versus the Zacks S&P 500 composite's +0.2% change. The Zacks Medical Info Systems industry, to which GE HealthCare belongs, has lost 10.2% over this period. Now the key question is: Where could the stock be headed in ...

GE Healthcare (GEHC) recently announced the introduction of its head-only MR scanner, SIGNA MAGNUS, which is designed to revolutionize neuroscience research. The system addresses the limitations of whole-body MR scanners, promising to propel advancements in neurology, oncology and psychiatry.This high-performance head-only MR scanner is designed to overcome the limitations of conventional whole-body MR systems, particularly in the realm of neuroscience. With its innovative design and advanced technology, SI ...

Key TakeawaysThe S&P 500 dropped 1.6% on Tuesday, April 30, 2024, cementing its first monthly loss of the year as data on wage growth reignited inflation concerns.GE HealthCare Technologies fell short of quarterly sales and profit estimates, and sales of the medical device maker tumbled.Leidos shares took off after the aviation and defense technology firm topped first-quarter estimates and boosted its guidance. Major U.S. equities indexes tumbled after a report from the Bureau of Labor Statistics showed a h ...

On balance, this stock seems no great bargain.GE HealthCare Technologies (GEHC -13.37%), one-third of the industrial behemoth that used to be General Electric, saw its shares crater 13.7% through 1:30 p.m. ET after reporting a narrow earnings miss Tuesday.Heading into earnings, analysts forecast GE HealthCare would earn $0.91 per share (adjusted for one-time items) on $4.8 billion in the first quarter of 2024 sales. Instead, the company reported a $0.90 per-share profit and sales of $4.6 billion. GE HealthC ...

GE HealthCare (GEHC) reported first-quarter 2024 adjusted earnings per share (EPS) of 90 cents, which aligned with the Zacks Consensus Estimate. However, the bottom line improved 5.9% year over year.GAAP EPS in the quarter was 81 cents, up 97.6% from the year-ago quarter’s level.Revenue DetailsThis Zacks Rank #3 (Hold) company reported revenues of $4.7 billion, down 1.3%, on a reported basis from the prior-year quarter’s recorded number and flat, organically. The decrease in sale volumes was partially offse ...

Financial Performance - For Q1 2024, revenues were $4.6 billion, approximately flat organically year-over-year, following strong double-digit growth in Q1 2023 [5][38] - Adjusted EBIT margin was 14.7%, up 50 basis points year-over-year, with adjusted EPS at $0.90, a 6% increase year-over-year [11][12] - Free cash flow generated was $274 million, reflecting improved working capital [18] Business Segment Performance - Imaging segment had flat organic revenue growth, with EBIT margin up 210 basis points year-over-year [14] - Ultrasound segment saw a 4% decline in organic revenue year-over-year, with EBIT margin decreasing by 200 basis points [15] - Patient Care Solutions experienced a 4% decline in organic revenue year-over-year, with EBIT margin down 310 basis points [16] - Pharmaceutical Diagnostics achieved 8% year-over-year organic growth, driven by price and volume increases [43] Market Performance - EMEA sales were slightly up, while sales in the U.S. and the rest of the world were flat compared to the prior year [12] - China revenue declined low double digits due to prior year stimulus effects and anticorruption impacts [38] Company Strategy and Industry Competition - The company is focused on margin expansion and innovation, with a healthy backlog of $18.7 billion [11][19] - Strategic partnerships, such as the 10-year alliance with OSF HealthCare, are aimed at enhancing care delivery and patient outcomes [35] - The company is investing in advanced manufacturing technologies, including 3D printing, to enhance product capabilities and quality [39] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the growth potential for the remainder of 2024, citing a positive order funnel and expected improvements in the U.S. market [28][36] - The company anticipates a modest sequential improvement in second quarter organic sales growth and adjusted EBIT margin [45] - Management noted that the stimulus in China could provide a positive catalyst for growth, depending on clarity and timing [74][122] Other Important Information - The company plans to host an Investor Day on November 21 in New York City to provide more insights on technology and innovation [26] - The company is actively working on reducing transitional service agreements (TSAs) to optimize its cost structure [40] Q&A Session Summary Question: U.S. year-over-year performance and future outlook - Management acknowledged the flat performance in the U.S. but noted a positive backdrop for order growth and potential improvements in the second half of the year [28][30] Question: Confidence in full year 2024 outlook - Management expressed strong confidence in achieving guidance, citing improved order visibility and easing comparisons as the year progresses [64][66] Question: Order growth translation into revenue growth - Management indicated that a positive book-to-bill ratio and a robust backlog support expectations for mid-single-digit revenue growth [70][85] Question: Impact of stimulus on order submissions - Management noted that clarity on stimulus rules is expected to encourage order submissions, potentially benefiting revenue in the second half of the year [59][74] Question: Updates on FDA approval for Flurpiridaz - Management indicated that Flurpiridaz is expected to be a significant product for cardiac imaging, with updates pending from the FDA [60][61] Question: Pricing environment and its impact - Management confirmed a solid pricing environment, expecting a 1% to 2% pricing impact on sales, which is trending in line with expectations [66][73] Question: Hospital CapEx sentiment and interest rates - Management reported that hospitals are generally in a better financial position, with interest rates not significantly impacting capital spending discussions [92][94]

For the quarter ended March 2024, GE HealthCare Technologies (GEHC) reported revenue of $4.65 billion, down 1.2% over the same period last year. EPS came in at $0.90, compared to $0.85 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $4.81 billion, representing a surprise of -3.33%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.90.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wal ...

Key TakeawaysGE HealthCare shares dropped in early trading Tuesday after the company reported first-quarter results that missed estimates.The medical device manufacturer reported revenue and net income below expectations, as sales in its Imaging, Ultrasound, and Patient Care Solutions segments fell from a year ago. Despite Tuesday's losses, GE HealthCare shares have gained since the start of the year. GE HealthCare (GEHC) shares tumbled over 9% in early trading Tuesday after the medical device manufacturer ...

GE HealthCare Technologies (GEHC) came out with quarterly earnings of $0.90 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this medical technology company would post earnings of $1.07 per share when it actually produced earnings of $1.18, delivering a surprise of 10.28%.Over the last four quarters, the company has surpassed consensus EPS estimates three times ...

Financial Performance - Total revenues for the three months ended March 31, 2024, were $4,650 million, a decrease of 1% or $57 million compared to the same period in 2023[130] - Net income attributable to GE HealthCare for the three months ended March 31, 2024, was $374 million, compared to $372 million in the same period of 2023, reflecting no significant change[139] - Adjusted EBIT for the three months ended March 31, 2024, was $681 million, an increase of 3% compared to $664 million in the same period of 2023[139] - Operating income for the three months ended March 31, 2024, was $540 million, a decrease of 3% from $559 million in the same period of 2023[139] - Total revenues for the three months ended March 31, 2024, were $4.65 billion, a decrease of 1% from $4.71 billion in the previous year[155] - Adjusted net income for Q1 2024 was $413 million, a 6% increase from $388 million in Q1 2023[161] - Diluted earnings per share for Q1 2024 increased to $0.90, up from $0.85 in Q1 2023, reflecting a $0.05 increase[165] Segment Performance - Imaging segment revenues were $2,466 million, decreasing 1% or $30 million, while Ultrasound segment revenues were $824 million, decreasing 4% or $35 million[136] - Imaging Segment EBIT increased by 26% to $240 million, while Ultrasound Segment EBIT decreased by 12% to $182 million[144] Revenue Sources - Revenues from the China region decreased 11% to $597 million, reflecting declines in all segment revenues following double-digit growth in the prior year[136] - The company generated revenues of $77 million from customers in Russia and Ukraine for the three months ended March 31, 2024, compared to $78 million in the same period of 2023[125] Costs and Expenses - The total cost of products sold was $1,967 million, a decrease of 3% or $70 million compared to $2,037 million in the same period of 2023[130] - Research and development expenses increased to $324 million for the three months ended March 31, 2024, compared to $270 million in the same period of 2023[130] - Research and Development (R&D) investments increased by $54 million, leading to a 120 basis point increase in R&D as a percentage of total revenues[140] - Cost of products sold decreased by $70 million, contributing to a gross profit increase of $11 million or 70 basis points as a percentage of total revenues[140] Cash Flow and Debt - Free cash flow for Q1 2024 was $274 million, a 16% decrease from $325 million in Q1 2023[168] - Cash from operating activities in Q1 2024 was $419 million, down 11% from $468 million in Q1 2023[173] - Total debt as of March 31, 2024, was $9,255 million, a decrease from $9,442 million as of December 31, 2023[183] - The company has access to $3,500 million in revolving credit facilities to support liquidity needs[171] Tax and Financial Charges - Interest and other financial charges – net decreased by $14 million, primarily due to lower overall borrowings[140] - The effective tax rate for Q1 2024 was 24.2%, down from 29.9% in Q1 2023[167] Capital Expenditures - Cash used for investing activities in Q1 2024 was $188 million, compared to $266 million in Q1 2023[173] - Capital expenditures for Q1 2024 were $145 million, primarily for manufacturing capacity expansion and new product introductions[180] Credit Ratings - As of April 23, 2024, the company's long-term credit ratings were Baa2 from Moody's, BBB from S&P, and BBB from Fitch, all with a stable outlook[189]