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GE HealthCare (GEHC) to Report Q3 Earnings: What's in Store?
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GE HealthCare Technologies Inc. (GEHC - Free Report) is scheduled to report third-quarter 2023 results on Oct 31, before market open.
In the last reported quarter, the company’s adjusted earnings per share of 92 cents surpassed the Zacks Consensus Estimate by 6.98%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
In January 2023, General Electric Company announced the completion of the spinoff of its healthcare business to create a new player in the field of Precision Care. From Jan 4, 2023, GE HealthCare started to trade on Nasdaq under the ticker symbol “GEHC.”
GE HealthCare is expected to report strong organic revenue growth, banking on balanced segmental performance driven by consistent new product introductions (NPIs) and growing customer demand. The quarter might have witnessed greater backlog fulfillment as supply challenges are gradually easing out. Further, improved pricing and successful commercial execution might have added to the top line in the third quarter.
In terms of operating segments, the Imaging business is expected to have benefited from health care providers’ continued investment in capacity globally to improve patient care and productivity. Volume is expected to have remained strong for surgical procedures, driving demand for Imaging. In the third quarter, the company is expected to have witnessed improvement in supply chain fulfillment and favorable pricing initiatives positively impacting the top line. Overall, imaging demand is healthy, supporting top-line growth.
GE HealthCare Technologies Inc. Price and EPS Surprise
Within Ultrasound, third-quarter organic revenue growth is expected to have been driven by strong performance of cardiovascular, general imaging and women’s health products on growing NPIs and improving supply chain fulfillment. The company had earlier noted that it expects to see strong customer demand in both hospital and other care settings through the months of 2023.
Within the Patient Care Solutions business, the company is expected to have witnessed organic revenue growth, banking on favorable volume and pricing. Similar to the second quarter, GEHC is expected to have benefited from tools-side production for highly constrained products in the third quarter.
The company’s Pharmaceutical Diagnostics business is expected to have delivered organic revenue growth, driven by favorable price, recovery of global elective procedures and stabilization of supply.
However, overall, a strong commercial performance in the third quarter might have been largely dented by a challenging macroeconomic environment and currency headwinds.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2023 revenues is pegged at $4.80 billion.
The Zacks Consensus Estimate for the company’s third-quarter 2023 earnings per share is 89 cents.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter, per our model.
LGND’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 52.47%. The Zacks Consensus Estimate for Ligand Pharmaceuticals’ third-quarter EPS implies an increase of 65.9% from the year-ago reported figure.
Catalyst Pharmaceuticals (CPRX - Free Report) has an Earnings ESP of +35.54% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
CPRX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 7.17%. The Zacks Consensus Estimate for Catalyst Pharmaceuticals’ third-quarter 2023 EPS indicates a rise of 50% from the year-ago reported figure.
Spero Therapeutics (SPRO - Free Report) currently has an Earnings ESP of +60.00% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
SPRO’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 72.4%. The Zacks Consensus Estimate for Spero Therapeutics’ fiscal 2023 third-quarter loss per share indicates a 54.6% improvement from the year-ago reported figure.
Image: Bigstock
GE HealthCare (GEHC) to Report Q3 Earnings: What's in Store?
GE HealthCare Technologies Inc. (GEHC - Free Report) is scheduled to report third-quarter 2023 results on Oct 31, before market open.
In the last reported quarter, the company’s adjusted earnings per share of 92 cents surpassed the Zacks Consensus Estimate by 6.98%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
In January 2023, General Electric Company announced the completion of the spinoff of its healthcare business to create a new player in the field of Precision Care. From Jan 4, 2023, GE HealthCare started to trade on Nasdaq under the ticker symbol “GEHC.”
GE HealthCare is expected to report strong organic revenue growth, banking on balanced segmental performance driven by consistent new product introductions (NPIs) and growing customer demand. The quarter might have witnessed greater backlog fulfillment as supply challenges are gradually easing out. Further, improved pricing and successful commercial execution might have added to the top line in the third quarter.
In terms of operating segments, the Imaging business is expected to have benefited from health care providers’ continued investment in capacity globally to improve patient care and productivity. Volume is expected to have remained strong for surgical procedures, driving demand for Imaging. In the third quarter, the company is expected to have witnessed improvement in supply chain fulfillment and favorable pricing initiatives positively impacting the top line. Overall, imaging demand is healthy, supporting top-line growth.
GE HealthCare Technologies Inc. Price and EPS Surprise
GE HealthCare Technologies Inc. price-eps-surprise | GE HealthCare Technologies Inc. Quote
Within Ultrasound, third-quarter organic revenue growth is expected to have been driven by strong performance of cardiovascular, general imaging and women’s health products on growing NPIs and improving supply chain fulfillment. The company had earlier noted that it expects to see strong customer demand in both hospital and other care settings through the months of 2023.
Within the Patient Care Solutions business, the company is expected to have witnessed organic revenue growth, banking on favorable volume and pricing. Similar to the second quarter, GEHC is expected to have benefited from tools-side production for highly constrained products in the third quarter.
The company’s Pharmaceutical Diagnostics business is expected to have delivered organic revenue growth, driven by favorable price, recovery of global elective procedures and stabilization of supply.
However, overall, a strong commercial performance in the third quarter might have been largely dented by a challenging macroeconomic environment and currency headwinds.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2023 revenues is pegged at $4.80 billion.
The Zacks Consensus Estimate for the company’s third-quarter 2023 earnings per share is 89 cents.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter, per our model.
Ligand Pharmaceuticals (LGND - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #1. The company is expected to release third-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
LGND’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 52.47%. The Zacks Consensus Estimate for Ligand Pharmaceuticals’ third-quarter EPS implies an increase of 65.9% from the year-ago reported figure.
Catalyst Pharmaceuticals (CPRX - Free Report) has an Earnings ESP of +35.54% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
CPRX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 7.17%. The Zacks Consensus Estimate for Catalyst Pharmaceuticals’ third-quarter 2023 EPS indicates a rise of 50% from the year-ago reported figure.
Spero Therapeutics (SPRO - Free Report) currently has an Earnings ESP of +60.00% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
SPRO’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 72.4%. The Zacks Consensus Estimate for Spero Therapeutics’ fiscal 2023 third-quarter loss per share indicates a 54.6% improvement from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.