GE HealthCare Posts Higher 2Q Profit, Revenue on Increased Orders

Dow Jones
07/29
 

GE HealthCare Technologies notched higher profit and revenue in the second quarter, boosted by increased orders across the business.

The medical-technology company on Wednesday posted a profit of $561 million, or $1.24 a share, compared with $486 million, or $1.06 a share, a year earlier.

Stripping out one-time items, earnings came in at $1.13 a share. Analysts polled by FactSet expected adjusted earnings of $1.04 a share.

Total revenues climbed 5.8% to $5.3 billion, just ahead of Wall Street models for $5.26 billion.

Chief Executive Peter Arduini said GE HealthCare posted record orders and backlog during the recent quarter. Orders grew across all business units, demonstrating strong commercial execution and the adoption of new products, he added.

Shares rose 9.8%, to $70.41, in premarket trading.

Advanced imaging solutions, the company's largest segment, posted revenue of $3.77 billion, up 7.9% from last year. And its pharmaceutical diagnostic arm logged revenue of $843 million, a 16% jump from last year.

The gains offset patient care solutions revenues, which fell 13% to $675 million. Arduini said the company is focused on returning the business to growth and profitability, reviewing strategic options to maximize its long-term value.

Looking ahead, GE HealthCare backed its profit outlook for the year, calling for adjusted earnings of $4.80 to $5 a share. It also reaffirmed its forecast for organic revenue growth of 3% to 4%.

 
 

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