GE HealthCare Set to Release Strong Q4 Earnings Amid Optimistic Analyst Ratings
GE HealthCare Technologies Inc. (GEHC), based in Chicago, Illinois, is recognized globally for its advancements in medical technology, focusing on innovative imaging, diagnostics, and patient monitoring systems. The company, currently valued at $38.7 billion by market cap, is scheduled to announce its fiscal Q4 earnings for 2024 before markets open on Thursday, Feb. 13.
Analysts Predict Increased Profits
In anticipation of the earnings report, analysts forecast that GE HealthCare will report a profit of $1.26 per share, representing a 6.8% increase from $1.18 per share in the same quarter last year. Notably, GE HealthCare has consistently met or exceeded Wall Street’s earnings expectations for the past four quarters.
Recent Performance and Future Expectations
In the last quarter, the company achieved an adjusted EPS of $1.14, surpassing consensus estimates by 7.6%. This strong performance was fueled by significant growth in the U.S., especially within Pharmaceutical Diagnostics, coupled with improved profit margins.
Looking ahead to fiscal 2024, analysts predict that the company will report EPS of $4.30, an increase of 9.4% from $3.93 in fiscal 2023. For fiscal 2025, EPS is expected to rise an additional 8.4% to $4.66.
Stock Performance Comparison
GE HealthCare’s shares have risen by 16.5% over the last 52 weeks. While this performance lags behind the S&P 500 Index’s ($SPX) impressive 26.5% gains, it has outperformed the modest growth seen in the Health Care Select Sector SPDR Fund (XLV).
Quarterly Earnings and Revisions
Following its Q3 earnings results released on Oct. 30, GE HealthCare’s stock price increased by over 2%. The company posted revenue of $4.86 billion, aligning with Wall Street estimates and reflecting a slight year-over-year increase. Additionally, GE HealthCare adjusted its full-year 2024 outlook, projecting organic revenue growth at the lower end of the 1% to 2% range due to weaker performance in China.
Its adjusted EBIT margin is estimated to be between 15.8% and 16%, indicating an improvement of 70 to 90 basis points over 2023, though slightly below earlier guidance. Free cash flow is expected to reach approximately $1.8 billion.
Analyst Consensus and Price Target
The consensus among analysts on GEHC stock is cautiously optimistic, assigning a “Moderate Buy” rating overall. Out of 18 analysts, 12 endorse a “Strong Buy,” five suggest a “Hold,” and one advises a “Strong Sell.” This outlook has improved slightly over the past month, with 11 analysts previously recommending a “Strong Buy.”
The average analyst price target for GEHC stands at $97.33, indicating a potential upside of 14.9% from current pricing levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please review the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
