GE HealthCare Technologies Inc. Sees Mixed Performance Amid Strong Q3 Results
Financial Overview Shows Promise Despite Market Challenges
With a market cap of $39.3 billion, Chicago-based GE HealthCare Technologies Inc. (GEHC) focuses on medical imaging, patient monitoring, and diagnostic products. The company provides advanced solutions for patient diagnosis and treatment through its four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics.
Over the past year, the medical technology company’s stock has lagged behind the broader market. GEHC has risen 22.8% in the last 52 weeks, whereas the S&P 500 Index ($SPX) has seen a 36.8% increase. Year-to-date, GEHC shares have climbed 11.2%, while the SPX has surged by 25.7%.
Nevertheless, when examining performance against its peers, GE HealthCare has outperformed the Health Care Select Sector SPDR Fund’s (XLV) 17.2% increase over the same period, as well as a 10.1% YTD gain.
On October 30, GEHC shares increased by 2.3% following the announcement of a Q3 profit of $1.14 per share, which surpassed the $1.06 estimate. This success was driven by strong demand in the U.S. across all segments. The company’s revenue for the quarter was $4.9 billion, aligning with expectations. While U.S. sales demonstrated robust mid-single-digit growth, challenges in China tempered overall performance. Additionally, GE HealthCare upgraded the lower end of its 2024 adjusted EPS guidance to $4.25, reflecting optimism for the year’s end.
For the current fiscal year ending in December, analysts anticipate that GEHC’s EPS will grow 9.2% year-over-year to $4.29. The company’s record of earnings surprises is favorable, having met or exceeded consensus estimates in the last four quarters.
Among 18 analysts tracking the stock, the overall consensus rating stands at a “Moderate Buy.” This rating encompasses 11 “Strong Buy” ratings, six “Holds,” and one “Strong Sell.”
This composition indicates a more positive outlook compared to three months ago, when there were only 10 “Strong Buy” ratings.
On October 31, Piper Sandler raised its price target for GE HealthCare to $97 and maintained an “Overweight” rating. The Q3 results, which exceeded expectations for revenue and EPS, informed this decision. While growth in the U.S. remains strong, potential delays in China’s stimulus could impact performance in early 2025.
Currently, GEHC shares are trading below the average price target of $97. The highest target of $110 suggests nearly 28% growth potential from current levels.
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On the date of publication, Sohini Mondal did not hold positions in any of the securities mentioned. All data and information are for informational purposes only. For further details, please consult the Barchart Disclosure Policy here.
The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.
