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Sep 30, 2023

GE HealthCare Q3 2023 Earnings Report

GE HealthCare reported a strong quarter with revenue growth and margin performance, demonstrating progress on productivity and price. Cash performance was strong due to improved inventory management.

Key Takeaways

GE HealthCare reported a 5% increase in revenue, with organic revenue growth of 6%. Net income was $375 million, and adjusted EBIT was $744 million. The company raised the low end of its full-year Adjusted EPS guidance range.

Revenue increased by 5% year-over-year, with organic revenue growth of 6%.

Net income attributable to GE HealthCare was $375 million.

Cash flow from operating activities was $650 million.

The company raised the low end of full-year Adjusted EPS guidance range.

Total Revenue
$4.82B
Previous year: $4.58B
+5.4%
EPS
$0.99
Previous year: $1.07
-7.5%
Book-to-Bill
1.03
Net Income Margin
7.8%
Previous year: 10.6%
-26.4%
Adjusted EBIT Margin
15.4%
Gross Profit
$1.94B
Previous year: $1.77B
+9.1%
Cash and Equivalents
$2.42B
Previous year: $504M
+379.8%
Free Cash Flow
$570M
Total Assets
$32.4B

GE HealthCare

GE HealthCare

GE HealthCare Revenue by Segment

Forward Guidance

Full year 2023 guidance is as follows: •Organic revenue growth* in the range of 6% to 8% 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 $3.75 to $3.85, raising the low end of range, and representing 11% to 14% growth versus Standalone Adjusted EPS* of $3.38 for 2022. The prior range was $3.70 to $3.85. •Free cash flow conversion* of 85% or more for the full year.

Positive Outlook

  • Organic revenue growth in the range of 6% to 8% 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 $3.75 to $3.85, raising the low end of range, and representing 11% to 14% growth versus Standalone Adjusted EPS of $3.38 for 2022.
  • Free cash flow conversion of 85% or more for the full year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income