Yahoo Finance Rising Demand Likely to Aid GE HealthCare's (GEHC) Q1 Earnings
GE HealthCare Technologies Inc. GEHC is scheduled to report first-quarter 2024 results on Apr 30, before market open.
In the last reported quarter, the company’s adjusted earnings per share of $1.18 surpassed the Zacks Consensus Estimate by 10.3%.
Let’s take a look at how things have shaped up prior to the announcement.
Factors at Play
GE HealthCare is expected to report strong organic revenue growth, banking on balanced segmental performance driven by consistent new product introductions (NPIs) and growing customer demand. The first quarter might have witnessed greater backlog fulfillment as supply challenges are gradually easing out. Further, improved pricing and successful commercial execution might have added to the top line in the first quarter.
GE HealthCare’s collaboration with Biofourmis in February, aimed at enabling more patients to return home sooner and provide them with a high-quality, at-home alternative to facility-based care, is likely to have boosted the company’s at-home services during the quarter, thereby driving revenues.
In terms of operating segments, the Imaging business is expected to have benefited from health care providers’ continued investment in capacity globally to improve patient care and productivity. Volume is expected to have remained strong for surgical procedures, driving demand for Imaging. In the first quarter, the company’s Imaging segment is expected to have witnessed improvement because it collaborated with MedQuest Associates. The collaboration is likely to have optimized imaging solutions and provided solutions to support Theranostics. The partnership between GE Healthcare, OSF Healthcare and Pointcore in February is also expected to have boosted GEHC’s imaging business during the quarter.
Overall, imaging demand is healthy, especially for Molecular Imaging, Computed Tomography and Magnetic Resonance, supporting top-line growth. Moreover, the company completed the acquisition of MIM Software earlier this month. The company may provide its integration plans for acquired AI-based solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology during the first-quarter earnings call.
Within Ultrasound, first-quarter organic revenue growth is expected to have been driven by the strong performance of cardiovascular, general imaging, and women’s health products on growing NPIs and improving supply-chain fulfillment. In February, the company launched its next-level LOGIQ ultrasound portfolio which included the new LOGIQ Totus enabling advanced precision care.
The launch of the next-level LOGIQ portfolio is expected to have a positive impact on the company’s Ultrasound business. The company also launched Prostate Volume Assist urology-based artificial intelligence (AI) software in March, which is likely to assist urologists by offering a solution that improves workflow and quickly captures prostate volume.
Within the Patient Care Solutions business, the company is expected to have witnessed organic revenue growth, banking on favorable volume and pricing. Similar to the fourth quarter, GEHC is expected to have benefited from tools-side production for highly constrained products in the first quarter of 2024.
The company’s Pharmaceutical Diagnostics business is expected to have delivered organic revenue growth, driven by favorable price, recovery of global elective procedures and stabilization of supply.
However, a strong commercial performance in the first quarter might have been primarily dented by a challenging macroeconomic environment and currency headwinds.
Q1 Estimates
The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $4.81 billion.
The Zacks Consensus Estimate for the company’s first-quarter 2024 earnings per share is pinned at 90 cents.
GE HealthCare Technologies Inc. Price and EPS Surprise
GE HealthCare Technologies Inc. price-eps-surprise | GE HealthCare Technologies Inc. Quote
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating on earnings. However, this is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Edwards Lifesciences EW has an Earnings ESP of +1.02% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s shares have surged 12.7% year to date. EW’s earnings met estimates in the last reported quarter. Edwards Lifesciences has a four-quarter average earnings surprise of 0.80%.
SiBone SIBN has an Earnings ESP of +0.69% and a Zacks Rank of 3 at present.
Shares of the company have lost 26.6% year to date. SIBN’s earnings beat estimates in the last reported quarter. SiBone has a trailing four-quarter average earnings surprise of 19.98%.
Cardinal Health CAH has an Earnings ESP of +1.11% and a Zacks Rank of 3 at present.
The stock has risen 7.4% year to date. CAH’s earnings beat estimates in the last reported quarter. Cardinal Health has a four-quarter average earnings surprise of 15.64%.
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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
SiBone (SIBN) : Free Stock Analysis Report
GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report
