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Jun 30, 2024
GE HealthCare Q2 2024 Earnings Report
GE HealthCare reported flat revenues and margin expansion despite headwinds in the China market. Solid orders growth was reported, with particular strength in the U.S.
Key Takeaways
GE HealthCare's Q2 2024 results showed flat revenues year-over-year but a 1% increase on an organic basis. Net income margin and adjusted EBIT margin both improved. The company updated its full-year guidance for organic revenue growth and adjusted EBIT margin.
Revenues were flat year-over-year; Organic revenue growth was 1%.
Net income margin was 8.9% versus 8.7% for the prior year; Adjusted EBIT margin was 15.3% versus 14.8%.
Diluted earnings per share (EPS) were $0.93 versus $0.91 for the prior year; Adjusted EPS was $1.00 versus $0.92.
Cash flow from operating activities was $(119) million versus $(67) million for the prior year; Free cash flow was $(182) million versus $(136) million.
GE HealthCare
GE HealthCare
GE HealthCare Revenue by Segment
Revenue by Segment
Imaging Revenue
CapyFin.comAdvanced Visualization Revenue
CapyFin.comPatient Care Solutions Revenue
CapyFin.comPharmaceutical Diagnostics Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The Company updates full-year 2024 guidance for Organic revenue growth and Adjusted EBIT margin and reaffirms other metrics as follows:
Positive Outlook
- Organic revenue growth in the range of 1% to 2% year-over-year versus the prior guide of approximately 4%, due to China market headwinds
- Adjusted EBIT margin in the range of 15.7% to 16.0%, reflecting an expansion of 60 to 90 basis points versus 2023 Adjusted EBIT margin of 15.1%; this compares to prior guidance of 15.6% to 15.9%
- 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
Challenges Ahead
- Operating in highly competitive markets
- The Company’s ability to successfully complete strategic transactions
- The actions or inactions of third parties with whom the Company partners and the various collaboration, licensing, and other partnerships and alliances the Company has with third parties
- Demand for the Company’s products, services, or solutions and factors that affect that demand
- Management of the Company’s supply chain and the Company’s ability to cost-effectively secure the materials it needs to operate its business
Revenue & Expenses
Visualization of income flow from segment revenue to net income