GE HealthCare Technologies (NASDAQ:GEHC) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

GE HealthCare Technologies (NASDAQ:GEHC) posted its quarterly earnings data on Wednesday. The company reported $1.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.04 by $0.09, FiscalAI reports. GE HealthCare Technologies had a return on equity of 20.46% and a net margin of 9.10%.The company had revenue of $5.29 billion for the quarter, compared to analysts’ expectations of $5.26 billion. During the same period in the previous year, the firm posted $1.06 EPS. GE HealthCare Technologies’s revenue was up 5.8% compared to the same quarter last year.

Here are the key takeaways from GE HealthCare Technologies’ conference call:

• Orders rose 11.1% year over year, with a record 1.15x book-to-bill and backlog of $23.9 billion, up $2.6 billion from a year ago. Management said the strength was broad-based and not driven by one-time deals.
• Pharmaceutical Diagnostics delivered 14.6% organic revenue growth, supported by contrast media and radiopharmaceuticals. Flyrcado doses increased approximately 40% from April levels to 545 for the week ending July 24, and GE HealthCare maintained its target of at least $500 million in annual Flyrcado revenue by 2028.
• Patient Care Solutions revenue declined 13.5% and the segment reported negative EBIT due to fulfillment and supply-chain challenges. Management expects sequential improvement in the second half while reviewing strategic alternatives, including continued ownership or a potential sale.
• GE HealthCare maintained its full-year outlook of 3%–4% organic sales growth, 15.4%–15.7% adjusted EBIT margin, adjusted EPS of $4.80–$5.00, and approximately $1.6 billion in free cash flow. Second-quarter adjusted EBIT margin fell 40 basis points to 14.2% as PCS weakness and inflation offset volume growth and pricing actions.
• CFO Jay Saccaro announced his departure, with Controller and Chief Accounting Officer George Newcomb serving as interim CFO while the company begins a search for a permanent successor.

GE HealthCare Technologies Trading Down 4.2%

Shares of NASDAQ:GEHC traded down $3.05 during mid-day trading on Thursday, reaching $68.85. 3,003,775 shares of the company were exchanged, compared to its average volume of 4,574,135. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.22 and a quick ratio of 0.95. The firm has a market cap of $31.32 billion, a price-to-earnings ratio of 16.47, a P/E/G ratio of 1.74 and a beta of 0.72. The firm’s 50-day simple moving average is $63.83 and its 200 day simple moving average is $70.69. GE HealthCare Technologies has a 1 year low of $58.75 and a 1 year high of $89.77.

GE HealthCare Technologies Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 24th will be issued a $0.035 dividend. This represents a $0.14 annualized dividend and a dividend yield of 0.2%. The ex-dividend date is Friday, July 24th. GE HealthCare Technologies’s dividend payout ratio is currently 3.35%.

Insider Transactions at GE HealthCare Technologies

In other news, Director Rodney F. Hochman acquired 1,618 shares of the company’s stock in a transaction dated Tuesday, May 12th. The stock was acquired at an average cost of $62.03 per share, with a total value of $100,364.54. Following the completion of the purchase, the director owned 1,618 shares of the company’s stock, valued at $100,364.54. This represents a ? increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, CFO James Saccaro acquired 3,310 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was purchased at an average price of $60.60 per share, for a total transaction of $200,586.00. Following the acquisition, the chief financial officer directly owned 87,471 shares in the company, valued at approximately $5,300,742.60. This trade represents a 3.93% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 15,928 shares of company stock worth $1,005,761 in the last ninety days. 0.36% of the stock is owned by company insiders.

Institutional Trading of GE HealthCare Technologies

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Transamerica Financial Advisors LLC boosted its stake in shares of GE HealthCare Technologies by 331.6% in the fourth quarter. Transamerica Financial Advisors LLC now owns 341 shares of the company’s stock valued at $28,000 after purchasing an additional 262 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in GE HealthCare Technologies during the 4th quarter worth approximately $34,000. Zions Bancorporation National Association UT boosted its position in GE HealthCare Technologies by 125.1% in the 4th quarter. Zions Bancorporation National Association UT now owns 412 shares of the company’s stock valued at $34,000 after buying an additional 229 shares during the period. Miller Capital Partners Inc. purchased a new position in GE HealthCare Technologies in the 4th quarter valued at approximately $38,000. Finally, Palisade Asset Management LLC acquired a new position in shares of GE HealthCare Technologies in the third quarter worth $41,000. 82.06% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Evercore reiterated an “outperform” rating and issued a $84.00 target price on shares of GE HealthCare Technologies in a research report on Thursday. Zacks Research cut shares of GE HealthCare Technologies from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 21st. JPMorgan Chase & Co. reduced their price target on shares of GE HealthCare Technologies from $80.00 to $65.00 and set a “neutral” rating on the stock in a research report on Thursday, April 30th. Hovde Group began coverage on GE HealthCare Technologies in a report on Friday, July 17th. They issued a “market perform” rating and a $14.00 price objective on the stock. Finally, Jefferies Financial Group lowered their price objective on GE HealthCare Technologies from $105.00 to $90.00 in a research report on Thursday, April 30th. Ten research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, GE HealthCare Technologies has a consensus rating of “Hold” and a consensus price target of $77.00.

Trending Headlines about GE HealthCare Technologies

Here are the key news stories impacting GE HealthCare Technologies this week:

• Positive Sentiment: Q2 results exceeded expectations: GE HealthCare reported adjusted earnings of $1.13 per share versus the $1.04 consensus estimate, while revenue reached approximately $5.29 billion, up about 5.8% year over year and slightly above forecasts. Reuters earnings report
• Positive Sentiment: Orders and backlog signal future revenue: Orders increased roughly 11%, with growth across every segment, while backlog reached a record $23.9 billion. Strong demand for imaging equipment, diagnostics and healthcare infrastructure supports the company’s forward revenue visibility. Zacks orders and backlog report
• Positive Sentiment: Analysts raised their outlook: BTIG increased its price target from $75 to $79 and maintained a buy rating, while Wells Fargo raised its target from $75 to $85 and assigned an overweight rating. These revisions suggest analysts see additional upside after the earnings beat.
• Positive Sentiment: Growth businesses remain strong: Pharmaceutical Diagnostics posted particularly healthy organic growth, helped by demand for contrast media and radiopharmaceuticals, while imaging benefited from cardiovascular ultrasound and CT demand. New products could provide additional growth over time.
• Neutral Sentiment: Unusual options activity: Investors purchased 8,956 GEHC call options, about 45% above average daily call volume. The activity may indicate increased bullish speculation, but options volume alone does not confirm a change in fundamentals.
• Negative Sentiment: Profitability and execution remain concerns: Adjusted EBIT margin contracted by approximately 40 basis points to 14.2%. The earnings beat also benefited from a tariff refund and a lower tax rate, which may limit the durability of the upside.
• Negative Sentiment: Patient Care Solutions is under pressure: The segment’s organic revenue declined about 13.5% and reported negative EBIT amid supply-chain and fulfillment problems. Management is reviewing strategic alternatives, including a possible sale, creating near-term uncertainty despite potential longer-term margin benefits.

GE HealthCare Technologies Company Profile

GE HealthCare Technologies (NASDAQ: GEHC) is a global medical technology and diagnostics company that develops, manufactures and markets a broad range of products and services for healthcare providers. Its portfolio centers on diagnostic imaging systems, including MRI, CT, PET and X-ray modalities, as well as ultrasound equipment. The company also supplies patient monitoring and anesthesia delivery systems, interventional and surgical imaging solutions, and molecular imaging technologies used in both clinical care and research settings.

In addition to hardware, GE HealthCare offers software, analytics and lifecycle services aimed at improving clinical workflows and equipment uptime.