GE HealthCare Backs FY Adj. EPS View, Cuts Organic Sales View As Q2 Revenues Miss Street; Stock Down

(RTTNews) - GE HealthCare Technologies Inc. (GEHC), while reporting second-quarter earnings above market, but revenues below the Street, on Wednesday confirmed its fiscal 2024 earnings view, and raised margin outlooK. Meanwhile, the firm cut forecast for annual organic revenue growth view.

In pre-market activity on the Nasdaq, GE HealthCare shares were losing around 9.3 percent to trade at $74.99.

For fiscal 2024, the company continues to expect adjusted earnings per share in the range of $4.20 to $4.35, representing 7 percent to 11 percent growth from prior year's $3.93 per share.

Analysts on average expect the company to report earnings of $4.27 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Further, the company now expects organic revenue growth in the range of 1 percent to 2 percent year-over-year, compared to previous outlook of around 4 percent growth, due to China market headwinds.

Adjusted EBIT margin is now expected in the range of 15.7 percent to 16.0 percent, reflecting an expansion of 60 to 90 basis points from prior year's 15.1 percent. This is compared to prior guidance of 15.6 percent to 15.9 percent.

In its second quarter, net income attributable was $428 million, or $0.93 per share, compared to $418 million, or $0.91 per share, in last year's second quarter.

Adjusted earnings were $459 million or $1.00 per share for the period, compared to $0.92 per share last year.

The company's revenue for the quarter rose 0.5 percent to $4.839 billion from $4.817 billion last year. Revenues went up 1 percent on an Organic basis year-over-year, with positive price and volume.

Analysts had expected the company to earn $0.98 per share on revenues of $4.87 billion.

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