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, 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 $5.32 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 $2.39 billion, flat year-over-year, with segment EBIT at $302 million, up 19% [5] - Advanced Visualization Solutions generated revenues of $1.44 billion, a 4% year-over-year increase, with segment EBIT at $374 million, up 15% [7] - Patient Care Solutions revenues were $827 million, flat year-over-year, with segment EBIT down 4% to $106 million [7] - Pharmaceutical Diagnostics revenues totaled $646 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 $1.96 billion, down from $2.1 billion a year ago [8] Financial Position - GEHC ended the fourth quarter with cash, cash equivalents, and investments of $2.89 billion, down from $3.57 billion in the previous quarter [9] - Total assets decreased to $33.08 billion from $33.86 billion sequentially [9] 2025 Guidance - For 2025, GE HealthCare expects adjusted EPS in the range of $4.61-$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]