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Yahoo
19 hours ago
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From GE HealthCare's Q1 Earnings Call
GE HealthCare's first quarter results came in above Wall Street expectations, as the company delivered broad-based revenue growth across all business segments. Management credited strong U.S. demand for imaging equipment—particularly in cardiology and oncology—as well as robust order activity and backlog expansion, for the positive momentum. CEO Peter Arduini highlighted, 'Record double-digit orders growth as a standalone company was driven by strength in the U.S. market, where we see customers prioritizing investments in imaging products.' The company also noted early market share gains and strong customer engagement as key contributors to the quarter's performance. Is now the time to buy GEHC? Find out in our full research report (it's free). Revenue: $4.78 billion vs analyst estimates of $4.66 billion (2.8% year-on-year growth, 2.5% beat) Adjusted EPS: $1.01 vs analyst estimates of $0.91 (10.6% beat) Adjusted EBITDA: $826.9 million vs analyst estimates of $794.4 million (17.3% margin, 4.1% beat) Management lowered its full-year Adjusted EPS guidance to $4 at the midpoint, a 14.5% decrease Operating Margin: 13.2%, up from 11.6% in the same quarter last year Organic Revenue rose 4.1% year on year (-0.5% in the same quarter last year) Market Capitalization: $32.96 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Larry Biegelsen (Wells Fargo) asked about the timing and magnitude of tariff impacts and the pace of mitigation. CFO Jay Saccaro explained that most mitigation will be realized in the second half of the year and further improvements are targeted for 2026. Jason Bednar (Piper Sandler) inquired whether tariff mitigation actions were accelerated from long-range plans. CEO Peter Arduini clarified that while some actions were advanced, the broader margin and growth outlook remains unchanged. Vijay Kumar (Evercore ISI) questioned the proportion of tariff headwinds tied to U.S.-China trade and the potential upside if tariffs are eased. Saccaro detailed that bilateral tariffs account for the majority of the impact and that a rollback could deliver substantial upside to earnings. Robbie Marcus (JPMorgan) requested updates on Flyrcado's launch and potential anti-dumping risks in China. Arduini confirmed Flyrcado is on track and stated that recent anti-dumping investigations are not expected to materially impact the business. Joanne Wuensch (Citi) probed the durability of hospital capital spending and the timeline for photon counting CT approval. Saccaro reported continued strength in U.S. and European demand, while Arduini reiterated that photon counting CT remains on schedule for regulatory submission. In the coming quarters, the StockStory team will closely monitor (1) the pace and effectiveness of GE HealthCare's tariff mitigation strategies, (2) progress on new product rollouts, including Flyrcado and photon counting CT, and (3) sustainability of order growth and backlog conversion, particularly in key markets like China and the U.S. Updates on supply chain adjustments and the impact of shifting trade policy will also be important indicators of execution. GE HealthCare currently trades at $71.99, up from $68.09 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
05-05-2025
- Business
- Yahoo
Here's Why GE HealthCare Stock Sank in April
The tariff conflict between the U.S. and China hurts GE HealthCare's earnings. Hospital capital equipment spending in China continues to be sluggish. An improvement in the trade conflict will create upside potential for GE HealthCare, and management believes China is a long-term growth opportunity. Shares in medical equipment company GE HealthCare Technologies (NASDAQ: GEHC) declined by 12.9% in April, according to data provided by S&P Global Market Intelligence. The key reason for the decline comes from the "Liberation Day" tariffs announced by President Donald Trump at the start of the month. The tariffs and the subsequent response, notably from China, have a significant impact on a company that's a large exporter to the country and uses components sourced from China in its products. Management previously estimated (based on the pre-April tariff announcements) a negative impact of $0.05 in earnings per share (EPS) in 2025 from tariffs. Still, the new tariffs announced in April are expected to have an incremental negative impact of $0.80 in 2025, for a total of $0.85. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Consequently, on its first-quarter earnings call in late April, management lowered its earnings and cash-flow expectations for 2025: Full-year organic revenue growth is still expected in the 2%-3% range. Adjusted EPS is now expected to be in the $3.90-$4.10 range, compared with prior guidance of $4.61-$4.75. Free cash flow is now expected to be at least $1.2 billion compared to prior guidance of at least $1.75 billion. CEO Peter Arduini discussed tariffs on the earnings call. He said, "We have conservatively assumed that the bilateral U.S. and China tariffs continue, accounting for 75% of our total net tariff impact." As such, the U.S./China trade tariff conflict is the key relationship to watch for GE HealthCare investors. It's a somewhat frustrating situation for investors because the company's investment case rests on the idea that solid underlying but low growth in developed markets would be supplemented by higher growth in end markets like China, where there's a desire to improve healthcare standards. Management sees China as an attractive long-term market, but tariffs aside, there are near-term headwinds. For example, management lowered guidance last year on lower demand from China, as the hospital capital equipment spending has taken far longer to drop into orders than management expected. The weakness in 2024 also flows into 2025, with management expecting revenue from China to decline by a mid-single-digit percentage in the first half, followed by a sequential improvement in the second half. The U.S./China trade relationship will dominate the outlook for GE HealthCare, but that need not be a negative thing now. With the market having priced in some bad news, some trade deal, or at least de-escalation of the conflict, would be good news. Still, that's not a certainty. GE HealthCare competes in China with European peers Siemens Healthineers and Philips, which might find themselves in a stronger competitive position due to the conflict. Before you buy stock in GE HealthCare Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and GE HealthCare Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE HealthCare Technologies. The Motley Fool has a disclosure policy. Here's Why GE HealthCare Stock Sank in April was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
GE Healthcare slashes 2025 profit forecast on tariff impact
This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. By the numbers Q1 sales: $4.78 billion 2.7% increase year over year Net income: $564 million Nearly 51% increase year over year GE Healthcare cut its 2025 adjusted earnings outlook to reflect an estimated 85-cent-per-share impact from tariffs, especially duties affecting trade with China, executives said on an earnings call Wednesday. CEO Peter Arduini said bilateral U.S. and China tariffs account for 75% of the total net impact. For the full year, GE Healthcare now expects adjusted earnings in a range of $3.90 to $4.10 per share, down from the prior estimate of $4.61 to $4.75. The revised outlook assumes that tariffs remain at the current elevated levels and that U.S. reciprocal tariffs on the rest of the world — announced April 2 — return to pre-pause rates on July 9. The forecast also assumes Mexico and Canada tariffs remain in place, with exemptions under the U.S.-Mexico-Canada Agreement continuing for all eligible imports. Executives detailed efforts that GE Healthcare is taking to mitigate its tariff exposure, including work on USMCA compliance and logistics routes. Without those actions, the gross impact of tariffs would be about $1.75 per share, Arduini said. CFO Jay Saccaro said the company is looking at tactics for further mitigating tariff impact, including more dual sourcing and making products where they are consumed. Tariffs aside, first-quarter revenue and profit growth exceeded GE Healthcare's expectations, according to Arduini, as strength in the U.S. market drove double-digit growth in orders. Customers are prioritizing investments in imaging products with a particular focus on cardiology and oncology, and the company gained share in multiple markets, the CEO added. Despite the tariff impact weighing on GE Healthcare's outlook, 'the company turned in a truly positive 1Q25 performance on multiple fronts,' including better-than-expected results in its China business, Stifel analyst Rick Wise wrote in a note to clients Wednesday. Saccaro characterized overall hospital capital demand as constructive, noting GE Healthcare has a record backlog that increased substantially year over year. 'A lot of [customer budgets] were set earlier in the year,' he said, 'and we haven't observed any significant cancellations or deferrals in response to the global trade environment.' Recommended Reading Trump's tariff effect has dominated medtech earnings calls Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
GE HealthCare Blames Tariffs For Lowering 2025 Profit Outlook, Initiates Stock Buyback
On Wednesday, GE HealthCare (NASDAQ:GEHC) reported first-quarter 2025 adjusted EPS of $1.01, which beat the consensus of 91 cents. It was up from 90 cents a year ago. The company reported sales of $4.78 billion, beating the consensus of $4.66 billion. Revenues increased 3% on reported and 4% on an organic basis year-over-year. Revenue growth was broad-based across all segments, with overall strength in the U.S. Total company book-to-bill was 1.09 times. Total company orders increased a record 10% organically net income margin was 11.8% versus 8.0% for the prior year, up 380 basis points (bps). The adjusted EBIT margin was 15.0% versus 14.7%, up 30 bps, as both measures saw benefits from volume and productivity. Stock Buyback: GE HealthCare authorized the repurchase of up to $1 billion. 'Our capital allocation priority remains focused on investing in our business to accelerate growth, but we believe that a share repurchase program allows us to opportunistically return capital to shareholders and is a demonstration of our view of GE HealthCare's strong long-term business prospects,' said Jay Saccaro, Vice President and Chief Financial Officer. GE HealthCare President and CEO Peter Arduini said, 'Regarding the current global trade environment, we are actively driving mitigation actions. We continue to see strong customer demand in many of the markets we serve and are well-positioned to drive long-term value as we invest in future innovation.' Guidance: GE HealthCare updated 2025 full-year guidance to include the estimated impact of announced tariffs. It reaffirmed 2025 organic revenue growth of 2% to 3% year over year. The company expects an adjusted EBIT margin of 14.2%-14.4%, down from prior guidance of 16.7%-16.8%. It forecasts an adjusted EPS of $3.90 to $4.10 (vs. consensus of $4.69), reflecting a 9% to 13% decline versus 2024 adjusted EPS of $4.49, which includes approximately $0.85 of tariff impact; this compares to the previous guidance of $4.61 to $4.75. The company forecasts free cash flow of at least $1.2 billion, compared to previous guidance of at least $1.75 billion. In March, GE HealthCare acquired the remaining 50% stake in Nihon Medi-Physics Co., Ltd (NMP) from Sumitomo Chemical, giving it full ownership. NMP's product portfolio includes GE HealthCare radiopharmaceuticals used to enable molecular imaging across neurology, cardiology and oncology procedures. NMP generated revenues of 28.2 billion Japanese yen (~$183 million) in 2023. GE Healthcare acquired Amersham plc in 2004 and subsequently held a 50% stake in NMP. Price Action: GEHC stock is up 3.87% at $70.73 at the last check Wednesday. Read Next:Photo by PixelBiss via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article GE HealthCare Blames Tariffs For Lowering 2025 Profit Outlook, Initiates Stock Buyback originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
30-04-2025
- Business
- Yahoo
GE HealthCare (NASDAQ:GEHC) Posts Better-Than-Expected Sales In Q1
Healthcare technology company GE HealthCare Technologies (NASDAQ:GEHC) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 2.8% year on year to $4.78 billion. Its non-GAAP profit of $1.01 per share was 10.6% above analysts' consensus estimates. Is now the time to buy GE HealthCare? Find out in our full research report. Revenue: $4.78 billion vs analyst estimates of $4.66 billion (2.8% year-on-year growth, 2.5% beat) Adjusted EPS: $1.01 vs analyst estimates of $0.91 (10.6% beat) Management lowered its full-year Adjusted EPS guidance to $4 at the midpoint, a 14.5% decrease Operating Margin: 13.2%, up from 11.6% in the same quarter last year Free Cash Flow Margin: 2.1%, down from 5.9% in the same quarter last year Organic Revenue rose 4% year on year (-0.5% in the same quarter last year) Market Capitalization: $31.17 billion GE HealthCare President and CEO Peter Arduini said, 'First quarter results reflect strong execution as we start the year with robust revenue, orders and profit growth, which were driven by strength in the U.S. We remain focused on delivering on our precision care and growth acceleration strategies, underscored by the closing of our acquisition of Nihon Medi-Physics, which we expect will increase global access to our next-generation radiopharmaceuticals. Regarding the current global trade environment, we are actively driving mitigation actions. We continue to see strong customer demand in many of the markets we serve and are well-positioned to drive long-term value as we invest in future innovation.' Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ:GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, GE HealthCare grew its sales at a tepid 3.9% compounded annual growth rate. This fell short of our benchmark for the healthcare sector and is a tough starting point for our analysis. Long-term growth is the most important, but within healthcare, a stretched historical view may miss new innovations or demand cycles. GE HealthCare's recent performance shows its demand has slowed as its annualized revenue growth of 2.9% over the last two years was below its three-year trend. GE HealthCare also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, GE HealthCare's organic revenue averaged 3.4% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, GE HealthCare reported modest year-on-year revenue growth of 2.8% but beat Wall Street's estimates by 2.5%. Looking ahead, sell-side analysts expect revenue to grow 2.2% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not catalyze better top-line performance yet. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. GE HealthCare has done a decent job managing its cost base over the last four years. The company has produced an average operating margin of 13.8%, higher than the broader healthcare sector. Analyzing the trend in its profitability, GE HealthCare's operating margin decreased by 1.2 percentage points over the last four years. A silver lining is that on a two-year basis, its margin has stabilized. Still, shareholders will want to see GE HealthCare become more profitable in the future. This quarter, GE HealthCare generated an operating profit margin of 13.2%, up 1.6 percentage points year on year. This increase was a welcome development and shows it was more efficient. We track the change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. GE HealthCare's flat EPS over the last three years was below its 3.9% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. In Q1, GE HealthCare reported EPS at $1.01, up from $0.90 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects GE HealthCare's full-year EPS of $4.60 to grow 5%. We enjoyed seeing GE HealthCare beat analysts' organic revenue expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its full-year EPS guidance was lowered and missed. Overall, this quarter was mixed. The stock traded up 1.7% to $69.22 immediately following the results. Big picture, is GE HealthCare a buy here and now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
