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Sep 30, 2024
GE HealthCare Q3 2024 Earnings Report
GE HealthCare reported Q3 2024 financial results with revenue growth of 1% year-over-year and organic revenue growth also at 1%. Net income margin was 9.7%, and adjusted EBIT margin was 16.3%. Diluted EPS was $1.02, and adjusted EPS was $1.14. Cash flow from operating activities reached $742 million, and free cash flow was $651 million. The company raised the low end of its full-year 2024 adjusted EBIT margin and adjusted EPS guidance.
Key Takeaways
GE HealthCare's Q3 2024 results showed a 1% increase in revenue and organic revenue. The company experienced margin expansion and improved earnings per share. They also updated their full-year guidance, raising the low end of adjusted EBIT margin and adjusted EPS expectations.
Revenue growth was 1% year-over-year, with organic revenue growth also at 1%.
Net income margin increased to 9.7% compared to 7.8% in the prior year, while adjusted EBIT margin rose to 16.3% from 15.4%.
Diluted earnings per share (EPS) were $1.02, up from $0.83 in the prior year, and adjusted EPS was $1.14, compared to $0.99.
Cash flow from operating activities was $742 million, up from $650 million, and free cash flow was $651 million, up from $570 million.
GE HealthCare
GE HealthCare
GE HealthCare Revenue by Segment
Revenue by Segment
Imaging Revenue
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CapyFin.com Forward Guidance
The Company updates full-year 2024 guidance as follows: •Organic revenue growth* trending toward the lower end of the range of 1% to 2% year-over-year, given the continued China market softness •Adjusted EBIT margin* in the range of 15.8% to 16.0%, reflecting an expansion of 70 to 90 basis points versus 2023 Adjusted EBIT margin* of 15.1%; this compares to prior guidance of 15.7% to 16.0% •Adjusted effective tax rate (ETR)* trending toward the lower end of the 23% to 25% range, given additional tax incentives recognized in third quarter 2024 •Adjusted EPS* in the range of $4.25 to $4.35, representing 8% to 11% growth versus Adjusted EPS* of $3.93 for 2023; this compares with prior range of $4.20 to $4.35 •Free cash flow* of approximately $1.8 billion
Positive Outlook
- Organic revenue growth trending toward the lower end of the range of 1% to 2% year-over-year.
- Adjusted EBIT margin in the range of 15.8% to 16.0%, reflecting an expansion of 70 to 90 basis points versus 2023.
- Adjusted effective tax rate trending toward the lower end of the 23% to 25% range.
- Adjusted EPS in the range of $4.25 to $4.35, representing 8% to 11% growth versus Adjusted EPS of $3.93 for 2023.
- Free cash flow of approximately $1.8 billion.
Challenges Ahead
- Organic revenue growth trending toward the lower end of the range due to continued China market softness.
- Uncertainty regarding the precise impact of global economic factors.
- Potential fluctuations in currency exchange rates.
- Impacts associated with potential business acquisitions or dispositions.
- Unpredictable timing and magnitude of restructuring activities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income