GE Healthcare has revised its full-year earnings guidance downward. Significant price increases in memory chips, crude oil, and freight during the recent quarter have negatively impacted the company's performance.

The medical technology firm announced on Wednesday that it now expects full-year adjusted earnings per share to be in the range of $4.80 to $5.00, compared to the previous forecast of $4.95 to $5.15. Analysts surveyed by FactSet had anticipated adjusted earnings per share of $5.06 on average.

The company reaffirmed its full-year organic revenue growth target of 3% to 4%.

Commenting on the revised earnings outlook, the Chief Executive Officer stated, "We are implementing a prudent operational strategy." He added that the company plans to offset more than half of the negative effects of inflation through pricing adjustments and cost control measures.

He noted, "It is important to highlight that the rollout of our new innovation strategy is progressing smoothly and delivering significant results, which will support future revenue expansion and margin improvement."

The company's shares fell 5.2% in premarket trading to $64.95.

First-quarter financial results showed that GE Healthcare reported a net profit of $389 million, or $0.85 per share. This compares to a net profit of $564 million, or $1.23 per share, in the same period last year.

Excluding one-time special items, first-quarter adjusted earnings per share were $0.99, falling short of the analyst consensus estimate of $1.05.

Total revenue for the first quarter increased by 7.4% year-over-year to $5.13 billion, exceeding Wall Street's expectation of $5.03 billion.

The CEO attributed GE Healthcare's revenue growth, which was at the high end of the company's projected range, primarily to strong commercial execution across its pharmaceutical diagnostics, advanced visualization solutions, and imaging businesses.