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GE HealthCare (GEHC) Q2 Earnings Beat Estimates, Net Margin Up
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GE HealthCare (GEHC - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of $1, which beat the Zacks Consensus Estimate by 2%. Also, the bottom line improved 8.7% year over year.
GAAP EPS in the quarter was 93 cents, up 2.2% from the year-ago quarter’s level.
Revenue Details
The company reported revenues of $4.8 billion, up 0.5% on a reported basis from the prior-year quarter and up 1.3% organically. Total company orders increased 3% organically year over year. However, the top line missed the Zacks Consensus Estimate by 1%.
Segmental Details
Imaging
Revenues from this segment totaled $2.6 billion, indicating a year-over-year decline of 1%, reportedly. Organically, revenues remained flat.
Segment EBIT was $286 million, up 3% year over year.
Ultrasound
This segment’s revenues totaled $823 million, down 2% year over year reportedly and down 1%, organically.
Segment EBIT was $178 million, down 7% year over year.
Patient Care Solutions
Revenues from this segment amounted to $772 million, flat from the year-ago quarter’s level reportedly and up 1%, organically.
Segment EBIT was $78 million, down 8% year over year.
Pharmaceutical Diagnostics
Revenues from this segment amounted to $639 million, up 12% from the year-ago quarter’s level. Organically, revenues improved 14%.
Segment EBIT was $200 million, up 31% year over year.
Margins
Net income margin was 8.9%, up 20 basis points from the prior-year period’s level, primarily due to benefits from productivity and pricing.
Cumulative cash flow from operating activities at the second quarter of 2024-end was $300 million compared with $401 million in the year-ago period.
Financial Position
GEHC exited the second quarter with cash, cash equivalents and investments of $2.02 billion compared with $2.56 billion at the prior-quarter end.
Total assets declined to $31.85 billion from $32.21 billion in the prior quarter.
2024 Guidance
GE HealthCare reaffirmed its earnings and updated its organic revenue guidance for 2024.
For 2024, the company expects adjusted EPS in the range of $4.20-$4.35, indicating an estimated growth of 7-11%. Revenues are now anticipated to improve 1-2% organically compared with the prior guidance of 4%. The Zacks Consensus Estimate for EPS and revenues is pegged at $4.27 and $20.12 billion, respectively.
GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise
Some better-ranked stocks in the broader medical space that have announced quarterly results are Boston Scientific Corporation (BSX - Free Report) , Hologic (HOLX - Free Report) and Universal Health Services (UHS - Free Report) .
Boston Scientific reported second-quarter 2024 adjusted EPS of 62 cents, which beat the Zacks Consensus Estimate by 6.9%. Revenues of $4.12 billion surpassed the Zacks Consensus Estimate by 2.5%. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has a long-term growth rate of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.
Hologic, carrying a Zacks Rank of 2 at present, has a long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.50%.
Hologic reported second-quarter 2024 adjusted EPS of $1.06, which beat the Zacks Consensus Estimate by 3.9%. Revenues of $1 billion surpassed the Zacks Consensus Estimate by 1.1%.
Universal Health Services reported second-quarter 2024 adjusted EPS of $4.31, which beat the Zacks Consensus Estimate by 27.9%. Revenues of $3.9 billion surpassed the Zacks Consensus Estimate by 1.5%. It currently carries a Zacks Rank of 1.
Universal Health Services has a long-term growth rate of 18%. UHS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.58%.
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GE HealthCare (GEHC) Q2 Earnings Beat Estimates, Net Margin Up
GE HealthCare (GEHC - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of $1, which beat the Zacks Consensus Estimate by 2%. Also, the bottom line improved 8.7% year over year.
GAAP EPS in the quarter was 93 cents, up 2.2% from the year-ago quarter’s level.
Revenue Details
The company reported revenues of $4.8 billion, up 0.5% on a reported basis from the prior-year quarter and up 1.3% organically. Total company orders increased 3% organically year over year. However, the top line missed the Zacks Consensus Estimate by 1%.
Segmental Details
Imaging
Revenues from this segment totaled $2.6 billion, indicating a year-over-year decline of 1%, reportedly. Organically, revenues remained flat.
Segment EBIT was $286 million, up 3% year over year.
Ultrasound
This segment’s revenues totaled $823 million, down 2% year over year reportedly and down 1%, organically.
Segment EBIT was $178 million, down 7% year over year.
Patient Care Solutions
Revenues from this segment amounted to $772 million, flat from the year-ago quarter’s level reportedly and up 1%, organically.
Segment EBIT was $78 million, down 8% year over year.
Pharmaceutical Diagnostics
Revenues from this segment amounted to $639 million, up 12% from the year-ago quarter’s level. Organically, revenues improved 14%.
Segment EBIT was $200 million, up 31% year over year.
Margins
Net income margin was 8.9%, up 20 basis points from the prior-year period’s level, primarily due to benefits from productivity and pricing.
Cumulative cash flow from operating activities at the second quarter of 2024-end was $300 million compared with $401 million in the year-ago period.
Financial Position
GEHC exited the second quarter with cash, cash equivalents and investments of $2.02 billion compared with $2.56 billion at the prior-quarter end.
Total assets declined to $31.85 billion from $32.21 billion in the prior quarter.
2024 Guidance
GE HealthCare reaffirmed its earnings and updated its organic revenue guidance for 2024.
For 2024, the company expects adjusted EPS in the range of $4.20-$4.35, indicating an estimated growth of 7-11%. Revenues are now anticipated to improve 1-2% organically compared with the prior guidance of 4%. The Zacks Consensus Estimate for EPS and revenues is pegged at $4.27 and $20.12 billion, respectively.
GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise
GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. Quote
Zacks Rank and Stocks to Consider
GEHC carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space that have announced quarterly results are Boston Scientific Corporation (BSX - Free Report) , Hologic (HOLX - Free Report) and Universal Health Services (UHS - Free Report) .
Boston Scientific reported second-quarter 2024 adjusted EPS of 62 cents, which beat the Zacks Consensus Estimate by 6.9%. Revenues of $4.12 billion surpassed the Zacks Consensus Estimate by 2.5%. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has a long-term growth rate of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.18%.
Hologic, carrying a Zacks Rank of 2 at present, has a long-term growth rate of 7.4%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 4.50%.
Hologic reported second-quarter 2024 adjusted EPS of $1.06, which beat the Zacks Consensus Estimate by 3.9%. Revenues of $1 billion surpassed the Zacks Consensus Estimate by 1.1%.
Universal Health Services reported second-quarter 2024 adjusted EPS of $4.31, which beat the Zacks Consensus Estimate by 27.9%. Revenues of $3.9 billion surpassed the Zacks Consensus Estimate by 1.5%. It currently carries a Zacks Rank of 1.
Universal Health Services has a long-term growth rate of 18%. UHS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.58%.