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GE HealthCare Q1 Earnings & Sales Beat Estimates, Net Margin Rises
GEHCGE HealthCare Technologies (GEHC) ZACKS·2025-04-30 16:25

Core Points - GE HealthCare (GEHC) reported first-quarter 2025 adjusted earnings per share (EPS) of 1.01,exceedingtheZacksConsensusEstimateof91centsby111.01, exceeding the Zacks Consensus Estimate of 91 cents by 11% and showing a year-over-year improvement of 12.2% [1] - The company's GAAP EPS was 1.23, reflecting a significant increase of 51.9% from the previous year [1] - GEHC's shares rose by 4.6% in pre-market trading following the earnings report, although the stock has declined 13% year-to-date compared to a 3.2% increase in the industry [1] Revenue Details - GEHC reported revenues of 4.78billion,markinga34.78 billion, marking a 3% year-over-year increase on a reported basis and a 4% increase organically, surpassing the Zacks Consensus Estimate by 2.5% [3] - Total company orders increased by 10% organically year over year, driven by strong performance in the U.S. market across all segments, particularly in Imaging and Pharmaceutical Diagnostics [3] Segmental Details - Imaging segment revenues reached 2.14 billion, up 4% year over year on a reported basis and 5% organically, with segment EBIT of 199million,a20199 million, a 20% increase year over year [4] - Advanced Visualization Solutions generated revenues of 1.24 billion, up 1% year over year on a reported basis and 3% organically, with segment EBIT of 261million,a2261 million, a 2% increase year over year [4] - Patient Care Solutions reported revenues of 753 million, up 1% year over year on a reported basis and 2% organically, while segment EBIT decreased by 41% year over year to 48million[5]PharmaceuticalDiagnosticsrevenuestotaled48 million [5] - Pharmaceutical Diagnostics revenues totaled 632 million, reflecting a 6% year-over-year increase and an 8% organic increase, with segment EBIT of 205million,up15205 million, up 15% year over year [5] Margins - The net income margin improved to 11.8%, an increase of 380 basis points from the prior year, primarily due to productivity and pricing benefits [6] - Cumulative cash flow from operating activities at the end of the first quarter was 250 million, down from 419millionayearago[6]FinancialPositionGEHCendedthefirstquarterwithcash,cashequivalents,andinvestmentstotaling419 million a year ago [6] Financial Position - GEHC ended the first quarter with cash, cash equivalents, and investments totaling 2.47 billion, a decrease from 2.89billioninthepreviousquarter[7]Totalassetsincreasedto2.89 billion in the previous quarter [7] - Total assets increased to 33.59 billion from 33.09billionsequentially[7]2025GuidanceGEHealthCareupdateditsearningsandorganicrevenueguidancefor2025,nowexpectingadjustedEPSintherangeof33.09 billion sequentially [7] 2025 Guidance - GE HealthCare updated its earnings and organic revenue guidance for 2025, now expecting adjusted EPS in the range of 3.90-4.10,downfromapreviousrangeof4.10, down from a previous range of 4.61-4.75,indicatingayearoveryeardeclineof9134.75, indicating a year-over-year decline of 9-13% due to unfavorable tariff impacts [9] - Revenues are anticipated to grow 2-3% organically, reflecting continued demand for its products and services, with the Zacks Consensus Estimate for 2025 EPS and revenues at 4.70 and $19.95 billion, respectively [9]