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GE HealthCare Q4 Earnings Beat Estimates, Sales Miss, Net Margin Rises

Core Insights - GE HealthCare (GEHC) reported fourth-quarter 2024 adjusted earnings per share (EPS) of 1.45,exceedingtheZacksConsensusEstimateof1.45, exceeding the Zacks Consensus Estimate of 1.26 by 15.1%, and showing a year-over-year improvement of 22.9% [1] - The company's shares gained 0.7% in pre-market trading following the earnings report, with a 3% increase over the past six months compared to the industry's 12.8% growth [2] - Total revenues for the fourth quarter were 5.32billion,a25.32 billion, a 2% year-over-year increase, although it missed the Zacks Consensus Estimate by 0.2% [3] Revenue Details - Revenues were driven by strong performance in the U.S. market across all segments, particularly in Advanced Visualization Solutions and Pharmaceutical Diagnostics [3] - For the full year 2024, GEHC reported revenues of 19.67 billion, reflecting a 1% year-over-year increase [4] Segment Performance - Imaging segment revenues were 2.39billion,flatyearoveryear,withsegmentEBITat2.39 billion, flat year-over-year, with segment EBIT at 302 million, up 19% [5] - Advanced Visualization Solutions generated revenues of 1.44billion,a41.44 billion, a 4% year-over-year increase, with segment EBIT at 374 million, up 15% [7] - Patient Care Solutions revenues were 827million,flatyearoveryear,withsegmentEBITdown4827 million, flat year-over-year, with segment EBIT down 4% to 106 million [7] - Pharmaceutical Diagnostics revenues totaled 646million,up9646 million, up 9% year-over-year, with segment EBIT at 212 million, up 47% [7] Margins and Cash Flow - The net income margin improved to 13.5%, up 580 basis points from the prior year, attributed to productivity and pricing benefits [8] - Cumulative cash flow from operating activities at the end of the fourth quarter was 1.96billion,downfrom1.96 billion, down from 2.1 billion a year ago [8] Financial Position - GEHC ended the fourth quarter with cash, cash equivalents, and investments of 2.89billion,downfrom2.89 billion, down from 3.57 billion in the previous quarter [9] - Total assets decreased to 33.08billionfrom33.08 billion from 33.86 billion sequentially [9] 2025 Guidance - For 2025, GE HealthCare expects adjusted EPS in the range of 4.614.61-4.75, indicating a year-over-year growth of 3-6% [10] - Revenues are anticipated to grow 2-3% organically, reflecting continued demand for its products and services [10]