We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GE HealthCare (GEHC) Q4 Earnings Beat, Volume & Price Improve
Read MoreHide Full Article
GE HealthCare (GEHC - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.18, which beat the Zacks Consensus Estimate of $1.07 by 10.3%. The bottom line, however, declined 9.9% year over year.
GAAP EPS in the quarter was 88 cents, down 27.3% from the year-ago quarter’s level.
Revenue Details
This currently Zacks Rank #3 (Hold) company reported revenues of $5.2 billion, up 5% from the prior-year quarter’s recorded number, reportedly as well as organically. The growth was driven by an improvement in pricing and higher volume. The top line also beat the Zacks Consensus Estimate by 2.2%.
Segmental Details
Imaging
Revenues from this segment totaled $2.8 billion, indicating a year-over-year improvement of 4%, reportedly as well as organically.
Segment EBIT was $337 million, up 5% year over year.
Ultrasound
This segment’s revenues totaled $944 million, down 1% year over year. Organically, revenues declined 2%.
Segment EBIT was $244 million, down 14.4% year over year.
Patient Care Solutions
Revenues from this segment amounted to $827 million, up 5% from the year-ago quarter’s level. Organically, revenues improved 4%.
Segment EBIT was $244 million, down 15.4% year over year.
Pharmaceutical Diagnostics
Revenues from this segment amounted to $144 million, up 25% from the year-ago quarter’s level. Organically, revenues improved 23%.
Segment EBIT was $244 million, up 32.1% year over year.
GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise
Net income margin was 7.7%, down 350 basis points (bps) from the prior-year period’s level, primarily due to standalone interest expense.
Cash flow from operating activities was $1.1 billion, down $13 million year over year.
Full-Year Results
GE HealthCare recorded total revenues of $19.6 billion in 2023, up 7% year over year. Organically, revenues increased 8%. Adjusted EPS for 2023 was $3.93, down 15.1% from the prior-year figure.
Financial Position
GEHC exited the fourth quarter with cash, cash equivalents and investments of $2.5 billion compared with $2.41 billion in the previous quarter.
Total assets increased to $32.45 billion from $32.38 billion in the prior quarter.
The company repaid $850 million of debt in the fourth quarter of 2023, followed by an additional $150 million in January.
2024 Guidance
GE HealthCare issued its earnings and revenue guidance for 2024.
For 2024, the company expects adjusted EPS in the range of $4.20-$4.35, implying an estimated growth of 7-11% over 2023. Revenues are anticipated to improve 4% organically. The Zacks Consensus Estimate for EPS and sales is pegged at $4.24 and $20.28 billion, respectively.
MASI has an estimated growth rate of 0.8% for 2024. Its earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering a negative average surprise of 0.87%. Masimo sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s shares have lost 26.5% in the past year against the industry’s 2.5% growth.
McKesson, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 14% for fiscal 2025. MCK’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.87%.
McKesson’s shares have risen 29% in the past year compared with the industry’s 10.3% growth.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated growth rate of 19.2% for 2024. CAH’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 15.67%.
Cardinal Health’s shares have rallied 37.8% in the past year compared with the industry’s 10.3% growth.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GE HealthCare (GEHC) Q4 Earnings Beat, Volume & Price Improve
GE HealthCare (GEHC - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.18, which beat the Zacks Consensus Estimate of $1.07 by 10.3%. The bottom line, however, declined 9.9% year over year.
GAAP EPS in the quarter was 88 cents, down 27.3% from the year-ago quarter’s level.
Revenue Details
This currently Zacks Rank #3 (Hold) company reported revenues of $5.2 billion, up 5% from the prior-year quarter’s recorded number, reportedly as well as organically. The growth was driven by an improvement in pricing and higher volume. The top line also beat the Zacks Consensus Estimate by 2.2%.
Segmental Details
Imaging
Revenues from this segment totaled $2.8 billion, indicating a year-over-year improvement of 4%, reportedly as well as organically.
Segment EBIT was $337 million, up 5% year over year.
Ultrasound
This segment’s revenues totaled $944 million, down 1% year over year. Organically, revenues declined 2%.
Segment EBIT was $244 million, down 14.4% year over year.
Patient Care Solutions
Revenues from this segment amounted to $827 million, up 5% from the year-ago quarter’s level. Organically, revenues improved 4%.
Segment EBIT was $244 million, down 15.4% year over year.
Pharmaceutical Diagnostics
Revenues from this segment amounted to $144 million, up 25% from the year-ago quarter’s level. Organically, revenues improved 23%.
Segment EBIT was $244 million, up 32.1% year over year.
GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise
GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. Quote
Margins
Net income margin was 7.7%, down 350 basis points (bps) from the prior-year period’s level, primarily due to standalone interest expense.
Cash flow from operating activities was $1.1 billion, down $13 million year over year.
Full-Year Results
GE HealthCare recorded total revenues of $19.6 billion in 2023, up 7% year over year. Organically, revenues increased 8%. Adjusted EPS for 2023 was $3.93, down 15.1% from the prior-year figure.
Financial Position
GEHC exited the fourth quarter with cash, cash equivalents and investments of $2.5 billion compared with $2.41 billion in the previous quarter.
Total assets increased to $32.45 billion from $32.38 billion in the prior quarter.
The company repaid $850 million of debt in the fourth quarter of 2023, followed by an additional $150 million in January.
2024 Guidance
GE HealthCare issued its earnings and revenue guidance for 2024.
For 2024, the company expects adjusted EPS in the range of $4.20-$4.35, implying an estimated growth of 7-11% over 2023. Revenues are anticipated to improve 4% organically. The Zacks Consensus Estimate for EPS and sales is pegged at $4.24 and $20.28 billion, respectively.
Stocks to Consider
Some better-ranked stocks in the broader medical space are Masimo (MASI - Free Report) , McKesson (MCK - Free Report) and Cardinal Health (CAH - Free Report) .
MASI has an estimated growth rate of 0.8% for 2024. Its earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering a negative average surprise of 0.87%. Masimo sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s shares have lost 26.5% in the past year against the industry’s 2.5% growth.
McKesson, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 14% for fiscal 2025. MCK’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.87%.
McKesson’s shares have risen 29% in the past year compared with the industry’s 10.3% growth.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated growth rate of 19.2% for 2024. CAH’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 15.67%.
Cardinal Health’s shares have rallied 37.8% in the past year compared with the industry’s 10.3% growth.