GE HealthCare Technologies Inc. (GEHC) reported its second-quarter earnings on Wednesday, surpassing market expectations for earnings but falling short on revenue. Despite these mixed results, the company reaffirmed its earnings forecast for fiscal 2024 and improved its margin outlook. However, it also revised down its annual organic revenue growth forecast.
In the Nasdaq pre-market session, shares of GE HealthCare dipped by approximately 9.3%, trading at $74.99.
For fiscal 2024, GE HealthCare maintains its adjusted earnings per share (EPS) projection in the range of $4.20 to $4.35, indicating a 7% to 11% growth from the previous year's EPS of $3.93. According to Thomson Reuters, analysts, on average, anticipate earnings of $4.27 per share, excluding one-time items.
The company has adjusted its organic revenue growth forecast to a range of 1% to 2% year-over-year, down from the earlier projection of around 4% growth. This adjustment is primarily attributed to challenges in the Chinese market.
GE HealthCare now anticipates its adjusted EBIT margin to be between 15.7% and 16.0%, an increase of 60 to 90 basis points from the prior year's margin of 15.1%. This is a slight improvement over the previous guidance of 15.6% to 15.9%.
In the second quarter, the company's net income attributable to shareholders was $428 million, or $0.93 per share, up from $418 million, or $0.91 per share, in the same period last year. Adjusted earnings for the quarter stood at $459 million, or $1.00 per share, compared to $0.92 per share in the previous year.
Quarterly revenue rose by 0.5% to $4.839 billion from $4.817 billion last year. On an organic basis, revenue increased by 1% year-over-year, driven by favorable pricing and volume.
Analysts had, on average, projected earnings of $0.98 per share on revenues of $4.87 billion.
