GE HealthCare Technologies (US:GEHC)2025-05-13 16:00Summary of GE HealthCare Technologies (GEHC) Conference Call Company Overview - Company: GE HealthCare Technologies (GEHC) - Event: BofA Healthcare Conference - Date: May 13, 2025 Key Industry Insights - Tariff Impact: GEHC has been significantly affected by tariffs between the U.S. and China, with an estimated impact of approximately $0.85 per share, of which $0.65 is related to U.S.-China tariffs [5][12][14] - Tariff Reduction: The recent reduction in tariffs is viewed positively, with a potential benefit of about $0.40 per share if tariffs decrease by 100 basis points on both sides [8][12] - Future Guidance: The company plans to refresh its guidance in July, depending on the outcomes of ongoing trade negotiations [12][15] Financial Performance - Q1 Results: GEHC reported a record organic revenue growth of 4% and a 10% order growth in Q1, following a 6% order growth in Q4 [19][20][21] - Regional Performance: Strong performance in the U.S. imaging sector, while Europe showed signs of recovery with solid order growth despite a reported 0% revenue growth [22][23][25] - China Market: Anticipated low single-digit decline in China, with expectations for recovery in the second half of the year [24][49] Market Dynamics - Hospital CapEx Environment: The overall hospital capital expenditure environment remains robust, with no significant concerns about recession impacting buying behavior [27][28] - Global Procedure Growth: Continued healthy growth in global procedures, which is beneficial for the pharmaceutical diagnostic business [29] Future Outlook - 2026 Projections: GEHC expects the tariff impact in 2026 to be less than $0.85 due to mitigating steps taken, including dual sourcing and local manufacturing [13][14] - Order Momentum: The company is optimistic about maintaining order momentum and achieving mid-single-digit growth in the coming years, particularly as new products are launched [39][55] Product Launch - Vocado Launch: The launch of Vocado is progressing well, with expectations to exceed $30 million in sales for the first year, contingent on successful execution of various operational elements [56][62][63] Additional Considerations - Backlog and Book-to-Bill Ratio: The company emphasizes the importance of backlog and book-to-bill ratios in assessing revenue potential, alongside order growth [44] - Long-term Strategy: GEHC is focused on innovation, commercial excellence, and digital initiatives to support long-term financial performance [43]