GE HealthCare Technologies is a leading medical technology firm with a significant market share in imaging and ultrasound equipment. The company reports four major segments: imaging (54% of revenue), ultrasound (18%), patient care solutions (16%), and pharmaceutical diagnostics (12%). The company's sales are geographically diverse, with the United States, EMEA, China, and the rest of the world accounting for 44%, 26%, 14%, and 16% respectively. Approximately half of its revenue is recurring, which consists of servicing (33% of revenue), pharmaceutical diagnostics (12%), and digital solutions (6%).
Performance Overview
For the second quarter of 2024, GE HealthCare Technologies Inc (GEHC, Financial) reported revenues of $4.8 billion, which were flat year-over-year but showed a 1% organic growth. The company achieved a net income margin of 8.9%, slightly up from 8.7% in the prior year. Diluted earnings per share (EPS) came in at $0.93, surpassing the analyst estimate of $0.92. Adjusted EPS was $1.00, up from $0.92 in the previous year.
Segment Performance
| Segment | Revenues ($ in millions) | YoY % Change | Segment EBIT ($ in millions) | YoY % Change | Segment EBIT Margin |
|---|---|---|---|---|---|
| Imaging | $2,596 | (1)% | $286 | 3% | 11.0% |
| Ultrasound | $823 | (2)% | $178 | (7)% | 21.6% |
| Patient Care Solutions | $772 | 1% | $78 | (8)% | 10.1% |
| Pharmaceutical Diagnostics | $639 | 12% | $200 | 31% | 31.2% |
Financial Achievements and Challenges
GE HealthCare Technologies Inc (GEHC, Financial) reported a solid book-to-bill ratio of 1.06 times, with total company orders increasing by 3% organically year-over-year. However, the company faced headwinds in the China market, which impacted its overall performance. Despite these challenges, the company managed to expand its adjusted EBIT margin to 15.3%, up from 14.8% in the prior year.
"In the second quarter, we delivered year-over-year sales growth and margin expansion despite headwinds in the China market. We also reported solid orders growth with particular strength in the U.S., as healthcare systems invest in technologies that enhance patient care and improve productivity," said GE HealthCare President and CEO Peter Arduini.
Income Statement Highlights
For the three months ended June 30, 2024, GE HealthCare Technologies Inc (GEHC, Financial) reported total revenues of $4.839 billion, compared to $4.817 billion in the same period last year. The gross profit increased to $2.002 billion from $1.940 billion. Operating income was $608 million, up from $570 million in the prior year. Net income attributable to GE HealthCare was $428 million, compared to $418 million in the previous year.
Balance Sheet and Cash Flow
As of June 30, 2024, GE HealthCare Technologies Inc (GEHC, Financial) reported total assets of $31.852 billion, slightly down from $32.454 billion at the end of 2023. Cash and cash equivalents stood at $2.015 billion, down from $2.504 billion. The company reported negative cash flow from operating activities of $(119) million, compared to $(67) million in the prior year, and free cash flow of $(182) million, down from $(136) million.
Outlook and Guidance
GE HealthCare Technologies Inc (GEHC, Financial) updated its full-year 2024 guidance, now expecting organic revenue growth in the range of 1% to 2% year-over-year, down from the prior guidance of approximately 4%. The adjusted EBIT margin is expected to be between 15.7% and 16.0%, reflecting an expansion of 60 to 90 basis points versus 2023. Adjusted EPS is projected to be in the range of $4.20 to $4.35, representing 7% to 11% growth compared to 2023.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from GE HealthCare Technologies Inc for further details.
