NASDAQ$GEHC

GE HealthCare Technologies Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

GE HealthCare reported flat revenues and margin expansion despite headwinds in the China market. Solid orders growth was reported, with particular strength in the U.S.

GE HealthCare's Q2 2024 results showed flat revenues year-over-year but a 1% increase on an organic basis. Net income margin and adjusted EBIT margin both improved. The company updated its full-year guidance for organic revenue growth and adjusted EBIT margin.

  • Revenues were flat year-over-year; Organic revenue growth was 1%.
  • Net income margin was 8.9% versus 8.7% for the prior year; Adjusted EBIT margin was 15.3% versus 14.8%.
  • Diluted earnings per share (EPS) were $0.93 versus $0.91 for the prior year; Adjusted EPS was $1.00 versus $0.92.
  • Cash flow from operating activities was $(119) million versus $(67) million for the prior year; Free cash flow was $(182) million versus $(136) million.

Headline financials

Total Revenue

$4.84B

Previous: $4.82B+0.5%
EPS

$0.93

Previous: $0.92+1.1%
Net income margin

8.9%

Previous: 8.7%+2.3%
Adjusted EBIT margin

15.3%

Previous: 14.8%+3.4%
Operating cash flow

-$119M

Previous: -$67M-77.6%
Capital Expenditures

-$64M

Previous: -$213M+70.0%
Free Cash Flow

$428M

Previous: $205M+108.8%
Net Income

$428M

Previous: $418M+2.4%
Operating Income

$608M

Previous: $570M+6.7%
Gross Profit

$2B

Previous: $1.94B+3.2%
Cash & Equivalents

$2B

Previous: $1.94B+3.2%
Total Assets

$31.9B

Previous: $32.3B-1.4%
R&D Expense

$327M

No prior period
Stock-Based Comp

$36M

Previous: $28M+28.6%

Revenue & EPS history

GE HealthCare · Revenue · Quarterly

$4.84B

Q2 2024+0.5%vs Q2 2023
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

GE HealthCare · $4.01B total across 4 segments · Q3 2023

  • Imaging
    $2.64B+4.7%
  • Patient Care
    $764M+9.0%
  • Pharma Diagnostics
    $589M+12.8%
  • Other
    $19M+35.7%

Forward guidance

The Company updates full-year 2024 guidance for Organic revenue growth and Adjusted EBIT margin and reaffirms other metrics as follows:

Tailwinds

  • Organic revenue growth in the range of 1% to 2% year-over-year versus the prior guide of approximately 4%, due to China market headwinds
  • Adjusted EBIT margin in the range of 15.7% to 16.0%, reflecting an expansion of 60 to 90 basis points versus 2023 Adjusted EBIT margin of 15.1%; this compares to prior guidance of 15.6% to 15.9%
  • Adjusted effective tax rate (ETR) in the range of 23% to 25%
  • Adjusted EPS in the range of $4.20 to $4.35, representing 7% to 11% growth versus Adjusted EPS of $3.93 for 2023
  • Free cash flow of approximately $1.8 billion

Headwinds

  • Operating in highly competitive markets
  • The Company’s ability to successfully complete strategic transactions
  • The actions or inactions of third parties with whom the Company partners and the various collaboration, licensing, and other partnerships and alliances the Company has with third parties
  • Demand for the Company’s products, services, or solutions and factors that affect that demand
  • Management of the Company’s supply chain and the Company’s ability to cost-effectively secure the materials it needs to operate its business

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 Q2 2024

Historical avgQ2 2024

-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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