GEHC Earnings Prediction
The chart below shows how GEHC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GEHC sees a +0.12% change in stock price 10 days leading up to the earnings, and a -0.81% change 10 days following the report. On the earnings day itself, the stock moves by +0.91%. This data can give you a slight idea of what to expect for the next quarter's release.
GEHC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.32B
2.17%
9.38%
Gross Margin
42.77%
3.28%
2.71%
Operating Margin
17.03%
10.30%
10.16%
Net Margin
13.87%
73.59%
37.87%
EPS
1.57
78.41%
53.92%
No Data Available
GEHC Earnings Analysis
GE Healthcare Technologies Inc Corporation (GEHC.O) Earnings Conference Call
Positive
Earnings Beat Expectations: GE HealthCare Technologies Inc. beats earnings expectations with reported EPS of $1.45, exceeding expectations of $1.26.
Segment Orders Growth: Orders growth was observed in every segment, with the strongest book-to-bill ratio since becoming a public company at 1.09 times.
Record Backlog Growth: The company reported a record backlog of $19.8 billion, up $700 million year-over-year, indicating strong future demand.
EBIT Margin Improvement: Adjusted EBIT margin improved to 18.7%, up 260 basis points year-over-year, driven by productivity and volume improvements.
Q4 Adjusted EPS Growth: Fourth quarter adjusted EPS was $1.45, reflecting a 23% year-over-year growth, showcasing strong earnings performance.
Enterprise Deal Success: The company closed 50 enterprise deals globally in 2024, contributing to a total value of over $5 billion in large deals since the spin-off.
Innovation and Product Vitality: Approximately 40 innovations were introduced in 2024, with new product introductions contributing to a strong vitality of about 50% for the year.
AI Leadership Expansion: GE HealthCare advanced its leadership in AI, increasing FDA authorizations from 58 to 85 within a year, demonstrating commitment to innovation.
R&D Investment Focus: The company invested $1.3 billion in R&D in 2024, equating to roughly 6.7% of sales, indicating a strong focus on innovation and technology development.
Pharmaceutical Diagnostics Growth: Pharmaceutical Diagnostics segment achieved 9% year-over-year organic growth with an EBIT margin of approximately 33%, reflecting strong performance in this area.
Negative
Organic Revenue Decline: Organic revenue growth for 2024 was only 1%, a significant decline from the 8% growth seen in 2023, indicating a slowdown in overall business performance.
Free Cash Flow Decline: Free cash flow decreased by $161 million year-over-year, which raises concerns about cash generation capabilities amidst inventory builds.
Negative Sales Outlook in China: The company expects negative sales performance in China for the first half of 2025, which could impact overall revenue growth and profitability.
Cautious EPS Growth Outlook: Adjusted EPS growth for 2025 is projected to be only 3% to 6%, reflecting a cautious outlook amid market uncertainties and tariff impacts.
Patient Care Revenue Challenges: The Patient Care Solutions segment reported flat organic revenue growth, indicating challenges in this area despite some improvements in services and fulfillment.
EBIT Margin Decline: The EBIT margin for the Patient Care Solutions segment declined by 50 basis points due to inflation and portfolio mix, suggesting pressure on profitability in this segment.
Foreign Exchange Impact on Revenue: The company anticipates a foreign exchange headwind to revenue of approximately 1.5%, which could further strain financial results.
Leadership Transition Uncertainty: The recent retirement announcement of Tom Westrick, President and CEO of Patient Care Solutions, may lead to uncertainty in leadership and strategic direction for that segment.
GEHC FAQs
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GEHC Earning Call Sentiment
GE HealthCare Technologies Inc. (NASDAQ:GEHC) Q4 2024 Earnings Call Transcript
GEHC.O
0.27%Positive
The earnings call presents a mixed picture. Strong revenue growth, margin expansion, and optimistic guidance are countered by a decline in free cash flow and cautious outlook in China. The Q&A reveals concerns about margin sustainability and unclear growth specifics. While new product launches and partnerships are promising, they are offset by potential headwinds in operational margins and cash flow. Overall, the sentiment is balanced, suggesting a neutral stock price movement.
