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Let’s take a look at how things might have shaped up for GEHC prior to the announcement.
Factors at Play
GE HealthCare’s performance is expected to have been hurt by a lower volume of sales during the third quarter. However, consistent new product introductions (NPIs) and backlog fulfillment on the back of easing supply challenges are likely to have provided a cushion. Further, improved pricing and successful commercial execution might have added to the top line.
In terms of operating segments, the Imaging business is expected to have benefited from health care providers’ continued investment in capacity to improve patient care and productivity. Volume is expected to have remained strong for surgical procedures, driving demand for Imaging.
The company’s deal with Salud Digna to deploy digital solutions is likely to have boosted the performance of Computed tomography (CT), Magnetic resonance (MR) and ultrasound systems across Mexico. The granting of approval to Vscan Air SL wireless handheld ultrasound system with Caption AI in August looks promising.
In May, GEHC launched a head-only MR scanner, SIGNA MAGNUS, to address the limitations of whole-body MR scanners. The Revolution RT was also launched in May to streamline the standard of care for cancer patients. In April, it launched Voluson Signature 20 and 18 ultrasound systems.
Overall, imaging demand is healthy, especially for Molecular Imaging, Computed Tomography and Magnetic Resonance, supporting top-line growth. Moreover, the company completed the acquisition of MIM Software in April, adding several products to its portfolio.
GEHC gained FDA clearance for performing Centiloid scaling for positron emission tomography (PET)-based amyloid imaging analysis and quantification in September. These products are likely to have brought additional revenues during the soon-to-be-reported quarter.
Within Ultrasound, organic revenue growth is expected to have been driven by the performance of cardiovascular, general imaging, and women’s health products on growing NPIs and improving supply-chain fulfillment.
GE HealthCare Technologies Inc. Price and EPS Surprise
The launch of the next-level LOGIQ portfolio is expected to have had a positive impact on the company’s Ultrasound business. The company also launched Prostate Volume Assist urology-based artificial intelligence (AI) software in March, which is likely to have assisted urologists by offering a solution that improves workflow and quickly captures prostate volume. However, sales for this segment declined during the second quarter. This implies that sales performance might have been under pressure in the soon-to-be-reported quarter.
Within the Patient Care Solutions business, the company is expected to have witnessed organic revenue decline due to unfavorable volume, partially offset by improved pricing. Similar to the second quarter, GEHC might have benefited from tools-side production for highly constrained products in the third quarter.
The Pharmaceutical Diagnostics business is expected to have delivered strong organic revenue growth, driven by favorable prices, recovery of global elective procedures and supply stabilization.
However, a strong commercial performance in the third quarter might have been primarily dented by a challenging macroeconomic environment and currency headwinds.
Q3 Estimates
The Zacks Consensus Estimate for revenues is pegged at $4.86 billion, implying growth of 0.9% year over year.
The Zacks Consensus Estimate for earnings per share is pinned at $1.06, suggesting an improvement of 7.1% from the prior-year level.
Earnings Beat Likely
Our proven model predicts an earnings beat for GE HealthCare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: The company has an Earnings ESP of +0.27% at present. 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.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
The company is likely to release third-quarter 2024 results on Nov. 5. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.63%. The Zacks Consensus Estimate for EPS implies an improvement of 33.3% from the year-ago figure.
ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +38.39% and a Zacks Rank #3 at present. The company is expected to release third-quarter 2024 results on Nov. 6.
ACAD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 42.37%. The Zacks Consensus Estimate for EPS implies a surge of 127.5% from the year-ago recorded figure.
10x Genomics (TXG - Free Report) has an Earnings ESP of +8.46% and a Zacks Rank #1 at present. The company is expected to release third-quarter 2024 results on Oct. 29.
TXG’s earnings missed estimates in three of the trailing four quarters and beat once, the average negative surprise being 1.00%. The loss per share in the reported quarter is expected to improve 33.3% from the year-earlier reported loss.
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Lower Volume Likely to Hurt GE HealthCare's Q3 Earnings
GE HealthCare Technologies Inc. (GEHC - Free Report) is scheduled to report third-quarter 2024 results on Oct. 30, before market open.
In the last reported quarter, the company’s adjusted earnings per share of $1 beat the Zacks Consensus Estimate by 0.27%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Let’s take a look at how things might have shaped up for GEHC prior to the announcement.
Factors at Play
GE HealthCare’s performance is expected to have been hurt by a lower volume of sales during the third quarter. However, consistent new product introductions (NPIs) and backlog fulfillment on the back of easing supply challenges are likely to have provided a cushion. Further, improved pricing and successful commercial execution might have added to the top line.
In terms of operating segments, the Imaging business is expected to have benefited from health care providers’ continued investment in capacity to improve patient care and productivity. Volume is expected to have remained strong for surgical procedures, driving demand for Imaging.
The company’s deal with Salud Digna to deploy digital solutions is likely to have boosted the performance of Computed tomography (CT), Magnetic resonance (MR) and ultrasound systems across Mexico. The granting of approval to Vscan Air SL wireless handheld ultrasound system with Caption AI in August looks promising.
In May, GEHC launched a head-only MR scanner, SIGNA MAGNUS, to address the limitations of whole-body MR scanners. The Revolution RT was also launched in May to streamline the standard of care for cancer patients. In April, it launched Voluson Signature 20 and 18 ultrasound systems.
Overall, imaging demand is healthy, especially for Molecular Imaging, Computed Tomography and Magnetic Resonance, supporting top-line growth. Moreover, the company completed the acquisition of MIM Software in April, adding several products to its portfolio.
GEHC gained FDA clearance for performing Centiloid scaling for positron emission tomography (PET)-based amyloid imaging analysis and quantification in September. These products are likely to have brought additional revenues during the soon-to-be-reported quarter.
Within Ultrasound, organic revenue growth is expected to have been driven by the performance of cardiovascular, general imaging, and women’s health products on growing NPIs and improving supply-chain fulfillment.
GE HealthCare Technologies Inc. Price and EPS Surprise
GE HealthCare Technologies Inc. price-eps-surprise | GE HealthCare Technologies Inc. Quote
The launch of the next-level LOGIQ portfolio is expected to have had a positive impact on the company’s Ultrasound business. The company also launched Prostate Volume Assist urology-based artificial intelligence (AI) software in March, which is likely to have assisted urologists by offering a solution that improves workflow and quickly captures prostate volume. However, sales for this segment declined during the second quarter. This implies that sales performance might have been under pressure in the soon-to-be-reported quarter.
Within the Patient Care Solutions business, the company is expected to have witnessed organic revenue decline due to unfavorable volume, partially offset by improved pricing. Similar to the second quarter, GEHC might have benefited from tools-side production for highly constrained products in the third quarter.
The Pharmaceutical Diagnostics business is expected to have delivered strong organic revenue growth, driven by favorable prices, recovery of global elective procedures and supply stabilization.
However, a strong commercial performance in the third quarter might have been primarily dented by a challenging macroeconomic environment and currency headwinds.
Q3 Estimates
The Zacks Consensus Estimate for revenues is pegged at $4.86 billion, implying growth of 0.9% year over year.
The Zacks Consensus Estimate for earnings per share is pinned at $1.06, suggesting an improvement of 7.1% from the prior-year level.
Earnings Beat Likely
Our proven model predicts an earnings beat for GE HealthCare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: The company has an Earnings ESP of +0.27% at present. 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.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.
Masimo (MASI - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to release third-quarter 2024 results on Nov. 5. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.63%. The Zacks Consensus Estimate for EPS implies an improvement of 33.3% from the year-ago figure.
ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +38.39% and a Zacks Rank #3 at present. The company is expected to release third-quarter 2024 results on Nov. 6.
ACAD’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 42.37%. The Zacks Consensus Estimate for EPS implies a surge of 127.5% from the year-ago recorded figure.
10x Genomics (TXG - Free Report) has an Earnings ESP of +8.46% and a Zacks Rank #1 at present. The company is expected to release third-quarter 2024 results on Oct. 29.
TXG’s earnings missed estimates in three of the trailing four quarters and beat once, the average negative surprise being 1.00%. The loss per share in the reported quarter is expected to improve 33.3% from the year-earlier reported loss.