NASDAQ$GEHC

GE HealthCare Technologies Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

GE HealthCare reported Q3 2024 financial results with revenue growth of 1% year-over-year and organic revenue growth also at 1%. Net income margin was 9.7%, and adjusted EBIT margin was 16.3%. Diluted EPS was $1.02, and adjusted EPS was $1.14. Cash flow from operating activities reached $742 million, and free cash flow was $651 million. The company raised the low end of its full-year 2024 adjusted EBIT margin and adjusted EPS guidance.

GE HealthCare's Q3 2024 results showed a 1% increase in revenue and organic revenue. The company experienced margin expansion and improved earnings per share. They also updated their full-year guidance, raising the low end of adjusted EBIT margin and adjusted EPS expectations.

  • Revenue growth was 1% year-over-year, with organic revenue growth also at 1%.
  • Net income margin increased to 9.7% compared to 7.8% in the prior year, while adjusted EBIT margin rose to 16.3% from 15.4%.
  • Diluted earnings per share (EPS) were $1.02, up from $0.83 in the prior year, and adjusted EPS was $1.14, compared to $0.99.
  • Cash flow from operating activities was $742 million, up from $650 million, and free cash flow was $651 million, up from $570 million.

Headline financials

Total Revenue

$4.86B

Previous: $4.82B+0.9%
EPS

$1.02

Previous: $0.99+3.0%
Adjusted EBIT margin

15.9%

Previous: 15.4%+3.2%
Capital Expenditures

-$90M

Previous: -$80M-12.5%
Free Cash Flow

$470M

Previous: $375M+25.3%
Net Income

$470M

Previous: $375M+25.3%
Operating Income

$676M

Previous: $617M+9.6%
Gross Profit

$2.03B

Previous: $1.94B+4.7%
Cash & Equivalents

$3.55B

Previous: $2.41B+47.4%
Total Assets

$33.9B

Previous: $32.4B+4.5%
Stock-Based Comp

$22M

Previous: $29M-24.1%

Revenue & EPS history

GE HealthCare · Revenue · Quarterly

$4.86B

Q3 2024+0.9%vs Q3 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 as follows: •Organic revenue growth* trending toward the lower end of the range of 1% to 2% year-over-year, given the continued China market softness •Adjusted EBIT margin* in the range of 15.8% to 16.0%, reflecting an expansion of 70 to 90 basis points versus 2023 Adjusted EBIT margin* of 15.1%; this compares to prior guidance of 15.7% to 16.0% •Adjusted effective tax rate (ETR)* trending toward the lower end of the 23% to 25% range, given additional tax incentives recognized in third quarter 2024 •Adjusted EPS* in the range of $4.25 to $4.35, representing 8% to 11% growth versus Adjusted EPS* of $3.93 for 2023; this compares with prior range of $4.20 to $4.35 •Free cash flow* of approximately $1.8 billion

Tailwinds

  • Organic revenue growth trending toward the lower end of the range of 1% to 2% year-over-year.
  • Adjusted EBIT margin in the range of 15.8% to 16.0%, reflecting an expansion of 70 to 90 basis points versus 2023.
  • Adjusted effective tax rate trending toward the lower end of the 23% to 25% range.
  • Adjusted EPS in the range of $4.25 to $4.35, representing 8% to 11% growth versus Adjusted EPS of $3.93 for 2023.
  • Free cash flow of approximately $1.8 billion.

Headwinds

  • Organic revenue growth trending toward the lower end of the range due to continued China market softness.
  • Uncertainty regarding the precise impact of global economic factors.
  • Potential fluctuations in currency exchange rates.
  • Impacts associated with potential business acquisitions or dispositions.
  • Unpredictable timing and magnitude of restructuring activities.

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 Q3 2024

Historical avgQ3 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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