GE HealthCare Technologies Inc · Q3 2023 earnings

Briefing

GE HealthCare reported a strong quarter with revenue growth and margin performance, demonstrating progress on productivity and price. Cash performance was strong due to improved inventory management.

GE HealthCare reported a 5% increase in revenue, with organic revenue growth of 6%. Net income was $375 million, and adjusted EBIT was $744 million. The company raised the low end of its full-year Adjusted EPS guidance range.

• Revenue increased by 5% year-over-year, with organic revenue growth of 6%.
• Net income attributable to GE HealthCare was $375 million.
• Cash flow from operating activities was $650 million.
• The company raised the low end of full-year Adjusted EPS guidance range.

Headline financials

Revenue & EPS history

Full year 2023 guidance is as follows: •Organic revenue growth* in the range of 6% to 8% 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 $3.75 to $3.85, raising the low end of range, and representing 11% to 14% growth versus Standalone Adjusted EPS* of $3.38 for 2022. The prior range was $3.70 to $3.85. •Free cash flow conversion* of 85% or more for the full year.