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Mar 31, 2024

GE HealthCare Q1 2024 Earnings Report

GE HealthCare's financial performance in Q1 2024 showed a slight revenue decline but margin expansion, driven by productivity and pricing. The company reaffirmed its full-year guidance.

Key Takeaways

GE HealthCare reported a 1% decline in revenues, but organic revenue was approximately flat. Net income margin increased to 8.0%, and adjusted EBIT margin rose to 14.7%. Diluted EPS was $0.81, and adjusted EPS was $0.90. The company reaffirmed its full-year 2024 guidance.

Revenues declined 1% year-over-year, but organic revenue growth was approximately flat.

Net income margin increased to 8.0%, and adjusted EBIT margin rose to 14.7%.

Diluted EPS was $0.81, and adjusted EPS was $0.90.

Cash flow from operating activities was $419 million, and free cash flow was $274 million. Company reaffirmed full year 2024 guidance

Total Revenue
$4.65B
Previous year: $4.71B
-1.2%
EPS
$0.9
Previous year: $0.85
+5.9%
Book-to-Bill
1.03
Previous year: 1.01
+2.0%
Net Income Margin
8%
Previous year: 7.9%
+1.3%
Adjusted EBIT Margin
14.7%
Previous year: 14.1%
+4.3%
Gross Profit
$1.9B
Previous year: $1.89B
+0.6%
Cash and Equivalents
$2.56B
Previous year: $2.33B
+10.1%
Free Cash Flow
$274M
Previous year: $325M
-15.7%
Total Assets
$32.2B
Previous year: $32.6B
-1.3%

GE HealthCare

GE HealthCare

GE HealthCare Revenue by Segment

Forward Guidance

The Company is reaffirming full year 2024 guidance as follows:

Positive Outlook

  • Organic revenue growth of approximately 4% year-over-year.
  • Adjusted EBIT margin in the range of 15.6% to 15.9%, reflecting an expansion of 50 to 80 basis points versus 2023 Adjusted EBIT margin of 15.1%.
  • Adjusted effective tax rate (ETR) in the range of 23% to 25%.
  • Adjusted EPS in the range of $4.20 to $4.35, representing 7% to 11% growth versus Adjusted EPS of $3.93 for 2023.
  • Free cash flow of approximately $1.8 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income