Advanced Visualization Solutions (AVS)
Search documents
Should You Buy, Sell, or Hold GE Healthcare Before Q1 Earnings?
ZACKS· 2025-04-28 16:25
Core Viewpoint - GE HealthCare Technologies Inc. (GEHC) is expected to report its first-quarter 2025 results on April 30, with adjusted earnings per share of $1.45 in the last quarter, surpassing estimates by 15.1% [1][3]. Performance Drivers - GEHC is likely to benefit from strong procedure volumes in its Imaging and Ultrasound businesses, particularly in the U.S., driven by outpatient imaging centers and a rebound in surgical procedures [3][4]. - The Advanced Visualization Solutions (AVS) segment has seen increased procedure volumes, especially in interventional cardiology, contributing to overall revenue growth [3][4]. - The company has a strong backlog and a record book-to-bill ratio of 1.09, indicating sustained demand momentum [4]. Challenges - The Chinese market presents challenges, with expected sales declines in the low single digits for 2025 due to a slow recovery [5][16]. - Despite early signs of improvement in order trends, actual revenue growth in China remains subdued [5]. Innovations and Strategic Initiatives - GEHC is advancing its precision care strategy with new products like Flyrcado for cardiovascular imaging and expanding its AI capabilities from 58 to 85 FDA-authorized solutions [6]. - Key partnerships, including a $1 billion Care Alliance with Sutter Health, aim to transform care for millions of patients [6]. Segmental Overview - The Imaging segment experienced flat revenues year-over-year, but the U.S. market remains strong, with an improved EBIT margin of 19% [7]. - The AVS segment achieved $1.44 billion in revenues with 4% organic growth, driven by U.S. sales [8]. - Patient Care Solutions (PCS) posted flat organic growth, with expectations for moderate growth in Q1 2025 due to increased demand for monitoring systems [10]. - Pharmaceutical Diagnostics (PDx) showed 9% organic revenue growth, expected to continue due to increased procedure volumes and favorable pricing trends [11]. Financial Estimates - The Zacks Consensus Estimate for Q1 2025 revenues is $4.66 billion, reflecting a 0.2% year-over-year growth, while earnings per share are estimated at $0.91, indicating a 1.1% improvement [12]. Long-Term Growth Potential - GEHC's growth is supported by new product launches and AI integration, particularly in imaging and pharmaceutical diagnostics [15]. - The company is focused on margin expansion and cost optimization to sustain profitability amid fluctuating demand [15][16]. - Despite challenges in China, GEHC's diversified global presence and strong U.S. performance provide a buffer against uncertainties [16].