GE Healthcare Technologies exceeded expectations with their third-quarter earnings and profit margins. The company’s shares remained stable during early trading.
Key Highlights
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GE Healthcare (ticker: GEHC) reported adjusted third-quarter earnings per share (EPS) of 99 cents with sales reaching $4.8 billion. Analysts had projected 90 cents and $4.8 billion, respectively.
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Sales witnessed a 5% year-over-year growth on a comparable basis, while operating profit margins stood at 15.4%, surpassing Wall Street’s estimated 14%.
CEO Optimistic about Performance
GE Healthcare’s CEO Peter Arduini expressed satisfaction with the company’s performance, stating, “We delivered another strong quarter of revenue growth with margin performance demonstrating progress on productivity and price.” Arduini went on to highlight the strong cash flow performance and confidence in the company’s 2023 outlook, emphasizing their commitment to innovation for customers and patients.
Full-Year Guidance and Fourth-Quarter Expectations
GE Healthcare reported a free cash flow of $570 million and maintained their full-year EPS guidance range at $3.70 to $3.85. The range implies a fourth-quarter EPS of 94 cents to $1.09, slightly lower than Wall Street’s projection of $1.14 per share.
Market Reaction
Following the release of the results, GE Healthcare stock saw a marginal increase of 0.1%. In contrast, S&P 500 futures experienced a 0.2% decline, and Dow Jones Industrial Average futures remained flat.
Future Outlook
GE Healthcare is scheduled to host a conference call at 8:30 a.m. Eastern time to discuss the results. Investors and analysts are eager to gain insights into the demand for medical equipment in 2024.
Analyst Perspective
Conclusion
With GE Healthcare shares currently trading at less than 15 times the estimated 2024 earnings, compared to the previous valuation of about 20 times, there may be potential upside for investors. GE Healthcare’s Q3 earnings and profit margins have exceeded expectations, reinforcing their position as a leading player in the healthcare industry.
