GE HealthCare Tops Q4 EPS Forecasts

Core Insights - GE HealthCare Technologies reported mixed financial results for Q4 2024, with adjusted EPS of $1.45 exceeding expectations of$1.27, while revenue of $5.32 billion showed modest growth of 2$1.18 in Q4 2023 to $1.45 in Q4 2024 [4] - Revenue of$5.32 billion was slightly below analysts' expectations of $5.33 billion, reflecting a 2$5.21 billion in Q4 2023 [4][7] - Net income margin improved to 13.5%, up from 7.7% in the previous year, indicating enhanced profitability [4] - Free cash flow decreased by 15.2% to $811 million from$956 million in Q4 2023, suggesting a need for improved cash management [4][10] Segment Performance - The Pharmaceutical Diagnostics segment experienced significant EBIT growth of 47% year over year, with a 9% revenue increase [8] - Advanced Visualization Solutions segment revenue grew by 4%, while the Imaging segment revenue remained flat year over year, indicating stagnation in a key area [8] Strategic Initiatives - GE HealthCare focused on innovation, launching nearly 40 new products and investing $138 million in Ireland to enhance service capabilities [9] - Partnerships in AI technology, such as with Nuffield Health in the UK, reflect the company's commitment to driving future innovation and market presence [9] Future Outlook - For 2025, GE HealthCare projects organic revenue growth of 2% to 3% and adjusted EPS growth of 3% to 6%, with EBIT margin enhancement to 16.7%-16.8% [12] - The company aims to leverage strategic partnerships and innovation to navigate challenging market conditions, particularly in China [12]