Latest news with #GEHealthCareTechnologies'
Yahoo
12-05-2025
- Business
- Yahoo
GE HealthCare Technologies (NasdaqGS:GEHC) Unveils Next-Gen MRI Innovations At ISMRM 2025
GE HealthCare Technologies recently made headlines with the launch of its SIGNA™ Sprint MRI system, a significant advancement in medical imaging, which may have added positive weight to its share price performance. Over the past month, GE HealthCare's stock rallied 11%, potentially reflecting investor optimism around such product innovations and strong Q1 earnings, where revenue and net income saw appreciable growth year-over-year. This price move aligns with broader market trends, including a surge in major indices like the Dow Jones, suggesting that the company's developments may have complemented the overall market momentum. Every company has risks, and we've spotted 1 possible red flag for GE HealthCare Technologies you should know about. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. The launch of GE HealthCare Technologies' SIGNA™ Sprint MRI system has sparked enthusiasm among investors, as evidenced by its 11% share price rally in the past month. This innovation, combined with positive Q1 earnings, underscores the potential for increased revenue and earnings. Analysts anticipate that the enhanced product pipeline and strategic partnerships will bolster future financial performance. However, a significant factor to monitor is how these developments align with the company's ongoing efforts to mitigate tariff impacts and address competitive pressures, which may influence earnings and margin projections. Over the last year, GE HealthCare Technologies' total return, including dividends, declined by 13.63%. This underperformance contrasts with the broader U.S. medical equipment industry, which achieved a more favorable return of 8.2% during the same period. The current share price of US$67.09 is trading at a 24.88% discount to the consensus analyst price target of US$87.25. This reflects an optimistic outlook for possible growth from new products and strategic acquisitions. Despite the recent uptick, investors might examine future revenue growth forecasts of 4% annually, particularly in light of competitive and regulatory challenges. Understanding these dynamics will be crucial for evaluating whether the current market sentiment aligns with future financial expectations. Gain insights into GE HealthCare Technologies' historical outcomes by reviewing our past performance report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:GEHC. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
02-05-2025
- Business
- Yahoo
GE HealthCare Technologies Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
As you might know, GE HealthCare Technologies Inc. (NASDAQ:GEHC) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$4.8b, some 2.6% above estimates, and statutory earnings per share (EPS) coming in at US$1.23, 38% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GE HealthCare Technologies after the latest results. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the current consensus from GE HealthCare Technologies' 19 analysts is for revenues of US$20.3b in 2025. This would reflect an okay 2.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to drop 11% to US$4.23 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$20.0b and earnings per share (EPS) of US$4.46 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year. View our latest analysis for GE HealthCare Technologies It might be a surprise to learn that the consensus price target fell 8.5% to US$89.26, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values GE HealthCare Technologies at US$110 per share, while the most bearish prices it at US$74.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that GE HealthCare Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.1% growth on an annualised basis. This is compared to a historical growth rate of 4.1% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than GE HealthCare Technologies. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GE HealthCare Technologies' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of GE HealthCare Technologies' future valuation. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for GE HealthCare Technologies going out to 2027, and you can see them free on our platform here. Plus, you should also learn about the 1 warning sign we've spotted with GE HealthCare Technologies . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
26-04-2025
- Business
- Yahoo
Here's What To Make Of GE HealthCare Technologies' (NASDAQ:GEHC) Decelerating Rates Of Return
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So, when we ran our eye over GE HealthCare Technologies' (NASDAQ:GEHC) trend of ROCE, we liked what we saw. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for GE HealthCare Technologies: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = US$3.0b ÷ (US$33b - US$9.6b) (Based on the trailing twelve months to December 2024). Therefore, GE HealthCare Technologies has an ROCE of 13%. On its own, that's a standard return, however it's much better than the 10% generated by the Medical Equipment industry. See our latest analysis for GE HealthCare Technologies In the above chart we have measured GE HealthCare Technologies' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for GE HealthCare Technologies . While the current returns on capital are decent, they haven't changed much. The company has employed 33% more capital in the last four years, and the returns on that capital have remained stable at 13%. 13% is a pretty standard return, and it provides some comfort knowing that GE HealthCare Technologies has consistently earned this amount. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns. To sum it up, GE HealthCare Technologies has simply been reinvesting capital steadily, at those decent rates of return. Yet over the last year the stock has declined 21%, so the decline might provide an opening. That's why we think it'd be worthwhile to look further into this stock given the fundamentals are appealing. If you'd like to know about the risks facing GE HealthCare Technologies, we've discovered 1 warning sign that you should be aware of. While GE HealthCare Technologies may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
15-03-2025
- Business
- Yahoo
Returns On Capital At GE HealthCare Technologies (NASDAQ:GEHC) Have Stalled
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, the ROCE of GE HealthCare Technologies (NASDAQ:GEHC) looks decent, right now, so lets see what the trend of returns can tell us. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for GE HealthCare Technologies: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.13 = US$3.0b ÷ (US$33b - US$9.6b) (Based on the trailing twelve months to December 2024). So, GE HealthCare Technologies has an ROCE of 13%. In absolute terms, that's a satisfactory return, but compared to the Medical Equipment industry average of 10% it's much better. View our latest analysis for GE HealthCare Technologies In the above chart we have measured GE HealthCare Technologies' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for GE HealthCare Technologies . While the current returns on capital are decent, they haven't changed much. Over the past four years, ROCE has remained relatively flat at around 13% and the business has deployed 33% more capital into its operations. 13% is a pretty standard return, and it provides some comfort knowing that GE HealthCare Technologies has consistently earned this amount. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders. To sum it up, GE HealthCare Technologies has simply been reinvesting capital steadily, at those decent rates of return. However, over the last year, the stock hasn't provided much growth to shareholders in the way of total returns. For that reason, savvy investors might want to look further into this company in case it's a prime investment. One more thing to note, we've identified 1 warning sign with GE HealthCare Technologies and understanding it should be part of your investment process. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
06-02-2025
- Business
- Yahoo
With 83% ownership, GE HealthCare Technologies Inc. (NASDAQ:GEHC) boasts of strong institutional backing
Given the large stake in the stock by institutions, GE HealthCare Technologies' stock price might be vulnerable to their trading decisions 51% of the business is held by the top 11 shareholders Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company If you want to know who really controls GE HealthCare Technologies Inc. (NASDAQ:GEHC), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 83% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. Let's delve deeper into each type of owner of GE HealthCare Technologies, beginning with the chart below. Check out our latest analysis for GE HealthCare Technologies Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. GE HealthCare Technologies already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of GE HealthCare Technologies, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in GE HealthCare Technologies. Capital Research and Management Company is currently the largest shareholder, with 13% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 7.9% of the stock. After doing some more digging, we found that the top 11 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our data suggests that insiders own under 1% of GE HealthCare Technologies Inc. in their own names. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own US$53m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. The general public, who are usually individual investors, hold a 14% stake in GE HealthCare Technologies. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It's always worth thinking about the different groups who own shares in a company. But to understand GE HealthCare Technologies better, we need to consider many other factors. Be aware that GE HealthCare Technologies is showing 1 warning sign in our investment analysis , you should know about... But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
