GE HealthCare Technologies (NASDAQ:GEHC) Announces Quarterly Earnings Results

GE HealthCare Technologies (NASDAQ:GEHC) posted its earnings results on Wednesday. The company reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.04 by $0.09, FiscalAI reports. GE HealthCare Technologies had a return on equity of 20.12% and a net margin of 9.33%.The company had revenue of $5.29 billion for the quarter, compared to analyst estimates of $5.26 billion. During the same quarter in the prior year, the company earned $1.06 earnings per share. GE HealthCare Technologies’s revenue was up 5.8% compared to the same quarter last year.

Here are the key takeaways from GE HealthCare Technologies’ conference call:

• Orders rose 11.1% year over year, with a record 1.15x book-to-bill and backlog of $23.9 billion, up $2.6 billion from a year ago. Management said the strength was broad-based and not driven by one-time deals.
• Pharmaceutical Diagnostics delivered 14.6% organic revenue growth, supported by contrast media and radiopharmaceuticals. Flyrcado doses increased approximately 40% from April levels to 545 for the week ending July 24, and GE HealthCare maintained its target of at least $500 million in annual Flyrcado revenue by 2028.
• Patient Care Solutions revenue declined 13.5% and the segment reported negative EBIT due to fulfillment and supply-chain challenges. Management expects sequential improvement in the second half while reviewing strategic alternatives, including continued ownership or a potential sale.
• GE HealthCare maintained its full-year outlook of 3%–4% organic sales growth, 15.4%–15.7% adjusted EBIT margin, adjusted EPS of $4.80–$5.00, and approximately $1.6 billion in free cash flow. Second-quarter adjusted EBIT margin fell 40 basis points to 14.2% as PCS weakness and inflation offset volume growth and pricing actions.
• CFO Jay Saccaro announced his departure, with Controller and Chief Accounting Officer George Newcomb serving as interim CFO while the company begins a search for a permanent successor.

GE HealthCare Technologies Trading Down 2.7%

Shares of NASDAQ GEHC traded down $1.91 on Friday, reaching $68.03. 2,135,009 shares of the company traded hands, compared to its average volume of 4,589,569. The stock has a market capitalization of $30.95 billion, a PE ratio of 15.60, a P/E/G ratio of 1.96 and a beta of 0.72. GE HealthCare Technologies has a fifty-two week low of $58.75 and a fifty-two week high of $89.77. The company has a current ratio of 1.26, a quick ratio of 0.95 and a debt-to-equity ratio of 0.92. The company has a 50 day moving average of $63.94 and a 200 day moving average of $70.57.

GE HealthCare Technologies Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, July 24th will be issued a $0.035 dividend. The ex-dividend date is Friday, July 24th. This represents a $0.14 annualized dividend and a yield of 0.2%. GE HealthCare Technologies’s payout ratio is 3.35%.

Insider Buying and Selling

In related news, Director Rodney F. Hochman purchased 1,618 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were bought at an average price of $62.03 per share, with a total value of $100,364.54. Following the completion of the purchase, the director directly owned 1,618 shares in the company, valued at approximately $100,364.54. This trade represents a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Watkin Phoebe L. Yang purchased 1,000 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was bought at an average price of $63.01 per share, for a total transaction of $63,010.00. Following the acquisition, the director owned 13,702 shares in the company, valued at $863,363.02. The trade was a 7.87% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have purchased 12,618 shares of company stock valued at $805,175. Insiders own 0.36% of the company’s stock.

Institutional Trading of GE HealthCare Technologies

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Parkside Financial Bank & Trust raised its position in shares of GE HealthCare Technologies by 3.9% in the fourth quarter. Parkside Financial Bank & Trust now owns 3,567 shares of the company’s stock valued at $293,000 after buying an additional 134 shares in the last quarter. Quadrant Capital Group LLC boosted its stake in shares of GE HealthCare Technologies by 1.1% in the fourth quarter. Quadrant Capital Group LLC now owns 12,557 shares of the company’s stock valued at $1,030,000 after buying an additional 140 shares during the period. Norinchukin Bank The grew its position in GE HealthCare Technologies by 0.4% during the third quarter. Norinchukin Bank The now owns 38,913 shares of the company’s stock worth $2,922,000 after buying an additional 149 shares in the last quarter. First Western Trust Bank grew its position in GE HealthCare Technologies by 5.8% during the fourth quarter. First Western Trust Bank now owns 2,964 shares of the company’s stock worth $243,000 after buying an additional 163 shares in the last quarter. Finally, Aptus Capital Advisors LLC increased its stake in GE HealthCare Technologies by 2.7% during the 4th quarter. Aptus Capital Advisors LLC now owns 6,299 shares of the company’s stock worth $517,000 after acquiring an additional 163 shares during the period. 82.06% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting GE HealthCare Technologies

Here are the key news stories impacting GE HealthCare Technologies this week:

• Positive Sentiment: Better-than-expected Q2 results: GE HealthCare reported adjusted EPS of $1.13 versus the $1.04 consensus estimate and revenue of approximately $5.30 billion, ahead of expectations. Revenue increased roughly 5.8% year over year, helped by healthy demand and increased orders. GEHC Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Strong demand and visibility: Orders reportedly rose 11.1%, while the company’s backlog reached a record $23.9 billion. Management also cited strong services sales and healthy demand, supporting expectations for continued revenue growth. GE HealthCare Looks Re-Rated After Strong Q2 and Record Backlog
• Positive Sentiment: Higher outlook and analyst targets: GE HealthCare raised its EPS guidance, strengthening the earnings outlook. Wells Fargo raised its price target from $75 to $85 and maintained an overweight rating, while BTIG increased its target from $75 to $79 and retained a buy rating. Wells Fargo Raises GEHC Price Target
• Neutral Sentiment: Elevated trading activity: Unusually high options volume, including increased call buying, indicates heightened investor interest but does not by itself establish a durable price trend. GE HealthCare Sees Unusually High Options Volume
• Negative Sentiment: Securities-fraud investigations: Several law firms announced or continued investigations into possible federal securities-law violations and solicited investors who lost money. The notices do not represent a finding of wrongdoing, but they could weigh on sentiment and increase legal uncertainty. GEHC Securities Fraud Investigation

Wall Street Analysts Forecast Growth

GEHC has been the topic of several recent research reports. JPMorgan Chase & Co. decreased their price objective on shares of GE HealthCare Technologies from $80.00 to $65.00 and set a “neutral” rating on the stock in a research report on Thursday, April 30th. Evercore restated an “outperform” rating and set a $84.00 target price on shares of GE HealthCare Technologies in a research report on Thursday. Zacks Research cut GE HealthCare Technologies from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 21st. Barclays cut their target price on shares of GE HealthCare Technologies from $87.00 to $78.00 and set an “equal weight” rating for the company in a research note on Thursday, April 30th. Finally, Oppenheimer restated an “outperform” rating on shares of GE HealthCare Technologies in a report on Thursday. Ten equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $77.45.

About GE HealthCare Technologies

GE HealthCare Technologies (NASDAQ: GEHC) is a global medical technology and diagnostics company that develops, manufactures and markets a broad range of products and services for healthcare providers. Its portfolio centers on diagnostic imaging systems, including MRI, CT, PET and X-ray modalities, as well as ultrasound equipment. The company also supplies patient monitoring and anesthesia delivery systems, interventional and surgical imaging solutions, and molecular imaging technologies used in both clinical care and research settings.

In addition to hardware, GE HealthCare offers software, analytics and lifecycle services aimed at improving clinical workflows and equipment uptime.