Lower Volume Likely to Hurt GE HealthCare's (GEHC) Q2 Earnings

Core Viewpoint - GE HealthCare Technologies Inc. (GEHC) is expected to report second-quarter 2024 results, with a focus on revenue growth driven by strong demand in imaging and pharmaceutical diagnostics, despite challenges in sales volume and macroeconomic conditions [15][8]. Group 1: Revenue Growth and Product Development - Imaging demand remains healthy, particularly in Molecular Imaging, Computed Tomography, and Magnetic Resonance, contributing to top-line growth [2]. - The company completed the acquisition of MIM Software in April, enhancing its product portfolio with new offerings likely to generate additional revenue [2]. - The Pharmaceutical Diagnostics business is anticipated to show strong organic revenue growth due to favorable pricing and recovery in global elective procedures [3]. Group 2: Financial Estimates - The Zacks Consensus Estimate for revenues is projected at $4.89 billion, indicating a year-over-year growth of 1.5% [4]. - The earnings per share estimate is set at 97 cents, reflecting a 5.4% improvement from the previous year [19]. Group 3: Market Performance and Challenges - GEHC's shares have experienced a 25.3% increase year to date, although the company faced lower sales volumes in the second quarter [6][8]. - The Ultrasound business is expected to benefit from the launch of the LOGIQ portfolio and AI software, which may enhance workflow for urologists [9][17]. - Despite strong commercial performance, the company may be impacted by a challenging macroeconomic environment and currency headwinds [18]. Group 4: Segment Performance - The Imaging business is projected to benefit from healthcare providers' investments in capacity, with strong demand for surgical procedures driving imaging needs [25]. - The Patient Care Solutions segment may see organic revenue decline due to unfavorable volume, although improved pricing could provide some offset [27]. - Recent product launches, including the SIGNA MAGNUS MR scanner and Voluson Signature ultrasound systems, are expected to support growth in imaging and patient care solutions [26].