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Mar 31, 2023

GE HealthCare Q1 2023 Earnings Report

GE HealthCare reported strong revenue growth across all business segments and regions due to easing supply chain challenges, with price and productivity positively impacting margin performance.

Key Takeaways

GE HealthCare reported a revenue of $4.7 billion, an 8% increase year-over-year. Net income attributable to GE HealthCare was $372 million, and adjusted EPS was $0.85. The company reaffirmed its full-year 2023 guidance, expecting 5% to 7% organic revenue growth.

Revenue increased by 8% year-over-year, with organic revenue growth of 12%.

Net income attributable to GE HealthCare was $372 million, while adjusted EBIT reached $664 million.

Diluted EPS was $0.41, and adjusted EPS was $0.85.

The Board of Directors declared a cash dividend of $0.03 per share for the first quarter of 2023.

Total Revenue
$4.71B
Previous year: $4.34B
+8.4%
EPS
$0.85
Previous year: $0.86
-1.2%
Book-to-Bill
1.01
Net Income Margin
7.9%
Adjusted EBIT Margin
14.1%
Gross Profit
$1.89B
Previous year: $1.68B
+12.7%
Cash and Equivalents
$2.33B
Previous year: $506M
+359.9%
Free Cash Flow
$325M
Previous year: $368M
-11.7%
Total Assets
$32.6B

GE HealthCare

GE HealthCare

GE HealthCare Revenue by Segment

Forward Guidance

The Company reaffirmed its guidance for full year 2023:

Positive Outlook

  • Organic revenue growth in the range of 5% to 7% year-over-year.
  • Adjusted EBIT margin in the range of 15.0% to 15.5%, reflecting an expansion of 50 to 100 basis points versus 2022 Standalone Adjusted EBIT margin of 14.5%.
  • Adjusted effective tax rate (ETR) in the range of 23% to 25%.
  • Adjusted EPS in the range of $3.60 to $3.75, representing 7% to 11% growth. This compares to 2022 Standalone Adjusted EPS of $3.38.
  • Free cash flow conversion of 85% or more for the full year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income