GE HealthCare GEHC reported third-quarter 2024 adjusted earnings per share (EPS) of $1.14, which beat the Zacks Consensus Estimate of $1.06 by 7.5%. Also, the bottom line improved 15.2% year over year.

GAAP EPS in the quarter was $1.02, up 22.9% from the year-ago level.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Revenue Details

The company reported revenues of $4.86 billion, up 1% year over year on a reported as well as organic basis. The top line was on par with the Zacks Consensus Estimate. Total company orders increased 1% organically year over year. Excluding China, sales as well as orders grew in the mid-single digit percentage points.

The top line was driven by strength in the U.S. market across all segments. Moreover, strong procedure volumes drove robust growth for the Pharmaceutical Diagnostics segment. However, continued softness in the Chinese market partially offset the growth.

Segmental Details

Imaging

Revenues from this segment totaled $2.23 billion, flat year over year reportedly. Organically, revenues declined 1%.

Segment EBIT was $287 million, up 18% year over year.

Advanced Visualization Solutions

Revenues totaled $1.22 billion, flat year over year reportedly as well as organically.

Segment EBIT was $232 million, down 9% year over year.

Patient Care Solutions

Revenues amounted to $779 million, up 2% from the year-ago level, reportedly as well as organically.

Segment EBIT was $82 million, up 3% year over year.

Pharmaceutical Diagnostics

Revenues totaled $625 million, up 6% from the year-ago level. Organically, revenues improved 7%.

Segment EBIT was $193 million, up 30.9% year over year.

GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise

GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. Quote

Margins

Net income margin was 9.7%, up 190 basis points from the prior-year level, primarily due to benefits from productivity and pricing.

Cumulative cash flow from operating activities at the end of the third quarter was $1.04 billion compared with $1.05 billion a year ago.

Financial Position

GEHC exited the third quarter with cash, cash equivalents and investments of $3.57 billion compared with $2.02 billion in the previous quarter.

Total assets increased to $33.86 billion from $31.85 billion on a sequential basis.

2024 Guidance

GE HealthCare updated its earnings and organic revenue guidance for 2024.

The company has raised its guidance for adjusted EPS and now expects it to be in the range of $4.25-$4.35 (previously $4.20-$4.35), indicating growth of 8-11%. Revenues are now anticipated to be at the lower-end of the guided range of 1-2% organically due to softness in China. The Zacks Consensus Estimate for EPS and revenues is pegged at $4.26 and $19.74 billion, respectively.

Zacks Rank and Stocks to Consider

GEHC carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the same medical industry are AngioDynamics ANGO, Avanos Medical AVNS and Globus Medical GMED.

AngioDynamics, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 38.2% for 2025. You can seethe complete list of today’s Zacks #1 Rank stocks here.

ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 19.2% year to date against the industry’s 6.1% growth.

Avanos, sporting a Zacks Rank of 1 at present, has an estimated growth rate of 31.2% for 2025. AVNS’ earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 5.7%.

Avanos’ shares have risen 5.3% year to date compared with the industry’s 5.1% growth.

Globus Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 38.7% year to date compared with the industry’s 6.1% growth.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AngioDynamics, Inc. (ANGO) : Free Stock Analysis Report

Globus Medical, Inc. (GMED) : Free Stock Analysis Report

AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report

GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research