GE HealthCare (GEHC) Q2 Earnings Beat Estimates, Net Margin Up

Core Viewpoint - GE HealthCare (GEHC) reported strong second-quarter 2024 adjusted earnings per share (EPS) of $1, exceeding the Zacks Consensus Estimate by 2% and showing an 8.7% year-over-year improvement [1] Revenue Details - The company generated revenues of $4.8 billion, reflecting a 0.5% increase on a reported basis and a 1.3% organic growth compared to the prior-year quarter. However, this figure fell short of the Zacks Consensus Estimate by 1% [2] Segmental Details - Imaging: Revenues totaled $2.6 billion, down 1% year-over-year, with organic revenues remaining flat. Segment EBIT was $286 million, up 3% year-over-year [3] - Ultrasound: Revenues reached $823 million, down 2% year-over-year and down 1% organically. Segment EBIT was $178 million, down 7% year-over-year [4] - Patient Care Solutions: Revenues amounted to $772 million, flat compared to the year-ago quarter, with a 1% organic increase. Segment EBIT was $78 million, down 8% year-over-year [4] - Pharmaceutical Diagnostics: Revenues were $639 million, up 12% year-over-year and 14% organically. Segment EBIT was $200 million, up 31% year-over-year [4] Margins - The net income margin was 8.9%, an increase of 20 basis points from the prior-year period, primarily driven by productivity and pricing benefits. Cumulative cash flow from operating activities at the end of the second quarter was $300 million, down from $401 million in the year-ago period [5] Financial Position - GEHC ended the second quarter with cash, cash equivalents, and investments totaling $2.02 billion, down from $2.56 billion at the end of the prior quarter. Total assets decreased to $31.85 billion from $32.21 billion in the previous quarter [6] 2024 Guidance - The company reaffirmed its earnings guidance for 2024, expecting adjusted EPS in the range of $4.20-$4.35, indicating a growth of 7-11%. Revenues are now anticipated to improve 1-2% organically, revised from the previous guidance of 4%. The Zacks Consensus Estimate for EPS and revenues stands at $4.27 and $20.12 billion, respectively [7][8]