NASDAQ$GEHC

GE HealthCare Technologies Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

GE HealthCare reported strong revenue growth driven by robust end market demand, improved pricing, and easing supply chain pressures.

GE HealthCare reported an 8% increase in revenues, reaching $4.9 billion, and a net income of $554 million for Q4 2022. The company's performance was driven by growth in Imaging, Patient Care Solutions (PCS), and Ultrasound, with a book-to-bill ratio of 1.07. GE HealthCare reaffirmed its 2023 guidance and introduced 2023 Adjusted EPS guidance.

  • Revenues increased by 8% year-over-year, with organic revenues up by 13%.
  • Net income was $554 million, compared to $564 million in the prior year.
  • EPS was $1.21, while Adjusted EPS was $1.31.
  • Cash flow from operating activities was $1.1 billion, and Free cash flow was $987 million.

Headline financials

Total Revenue

$4.94B

Previous: $17.6B-71.9%
EPS (adj)

$1.31

Previous: $4.95-73.5%
Net income margin

11.2%

No prior period
Adjusted EBIT margin

17.1%

No prior period
Operating cash flow

$1.1B

No prior period
Book-to-bill ratio

1.07

No prior period
Free Cash Flow

$987M

No prior period
Net Income

$554M

Previous: $564M-1.8%
Operating Income

$777M

Previous: $727M+6.9%
Gross Profit

$1.93B

Previous: $1.86B+3.8%
Cash & Equivalents

$1.45B

No prior period
Total Assets

$27.5B

No prior period
Stock-Based Comp

$9M

Previous: $76M-88.2%

Revenue & EPS history

GE HealthCare · Revenue · Quarterly

$4.94B

Q4 2022-71.9%vs Q4 2021
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

GE HealthCare · $3.97B total across 4 segments · Q4 2022

  • Imaging
    $2.7B
  • Patient Care
    $786M
  • Pharma Diagnostics
    $473M
  • Other
    $14M

Forward guidance

The Company reaffirmed its guidance for full year 2023 and introduced Adjusted EPS guidance as follows:

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. 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

Historical avg

-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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