NASDAQ$GEHC

GE HealthCare Technologies Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

GE HealthCare reported strong revenue growth across all business segments and regions due to easing supply chain challenges, with price and productivity positively impacting margin performance.

GE HealthCare reported a revenue of $4.7 billion, an 8% increase year-over-year. Net income attributable to GE HealthCare was $372 million, and adjusted EPS was $0.85. The company reaffirmed its full-year 2023 guidance, expecting 5% to 7% organic revenue growth.

  • Revenue increased by 8% year-over-year, with organic revenue growth of 12%.
  • Net income attributable to GE HealthCare was $372 million, while adjusted EBIT reached $664 million.
  • Diluted EPS was $0.41, and adjusted EPS was $0.85.
  • The Board of Directors declared a cash dividend of $0.03 per share for the first quarter of 2023.

Headline financials

Total Revenue

$4.71B

Previous: $4.34B+8.4%
EPS (adj)

$0.85

Previous: $0.86-1.2%
Net income margin

7.9%

No prior period
Adjusted EBIT margin

14.1%

No prior period
Operating cash flow

$468M

No prior period
Book-to-bill ratio

1.01

No prior period
Capital Expenditures

-$143M

Previous: $100M-243.0%
Free Cash Flow

$229M

Previous: $368M-37.8%
Net Income

$372M

Previous: $389M-4.4%
Operating Income

$559M

Previous: $509M+9.8%
Gross Profit

$1.89B

Previous: $1.68B+12.7%
Cash & Equivalents

$2.32B

Previous: $506M+359.3%
Total Assets

$32.6B

No prior period
Stock-Based Comp

$24M

Previous: $19M+26.3%

Revenue & EPS history

GE HealthCare · Revenue · Quarterly

$4.71B

Q1 2023+8.4%vs Q1 2022
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

GE HealthCare · $3.85B total across 4 segments · Q1 2023

  • Imaging
    $2.5B+8.2%
  • Patient Care
    $781M+9.1%
  • Pharma Diagnostics
    $558M+15.3%
  • Other
    $13M-23.5%

Forward guidance

The Company reaffirmed its guidance for full year 2023:

Tailwinds

  • Organic revenue growth in the range of 5% to 7% year-over-year.
  • Adjusted EBIT margin in the range of 15.0% to 15.5%, reflecting an expansion of 50 to 100 basis points versus 2022 Standalone Adjusted EBIT margin of 14.5%.
  • Adjusted effective tax rate (ETR) in the range of 23% to 25%.
  • Adjusted EPS in the range of $3.60 to $3.75, representing 7% to 11% growth. This compares to 2022 Standalone Adjusted EPS of $3.38.
  • Free cash flow conversion of 85% or more for the full year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-0.3%

Avg return

30 days after

50%

8 / 16 earnings

Positive

+11.5%

Q4 2021

Best reaction

-12.9%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-12.9%-10.9%-8.9%
Q4 2025+6.4%+0.4%-5.7%
Q3 2025-2.7%-6.2%+0.7%
Q1 2025+3.3%+1.9%+3.6%
Q4 2024+8.8%+7.9%-4.6%
Q3 2024+2.4%+2.0%-2.4%
Q2 2024+0.9%-1.4%+2.6%
Q1 2024-12.0%-10.6%-11.7%
Q4 2021+11.5%+10.8%+26.2%
Q3 2023+8.1%+13.3%+8.4%
Q3 2022+8.1%+13.3%+8.4%
Q2 2023-4.0%-3.4%-15.1%
Q1 2023-8.7%-7.3%-9.0%
Q1 2022-8.7%-7.3%-9.0%
Q2 2022-2.3%+0.8%+4.4%
Q4 2022-0.8%+0.7%+7.4%
Q3 2021
Q2 2021
Q1 2021

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