Latest news with #medicalequipment
Wall Street Journal
4 hours ago
- Business
- Wall Street Journal
GE HealthCare Raises 2025 Outlook After Earlier Reduction
GE HealthCare GEHC -0.03%decrease; red down pointing triangle raised its outlook for the year after trimming its forecast earlier in the year, reflecting greater certainty around tariffs. The maker of magnetic-resonance imaging scanners and other health-care machines now expects organic revenue growth of about 3% year over year compared to a previous forecast of growth between 2% and 3%. It also forecast adjusted earnings per-share in the range of $4.43 to $4.63, which includes around 45 cents in impacts from tariffs, and free cash flow of at least $1.4 billion.
Reuters
2 days ago
- Business
- Reuters
Revvity trims 2025 profit forecast as China policy changes hit diagnostics demand
July 28 (Reuters) - Revvity (RVTY.N), opens new tab on Monday lowered its full-year adjusted profit forecast as it expects demand for diagnostics products in its key market China to be hurt by changes to the country's reimbursement policy, sending the company's shares down nearly 10%. The medical equipment maker said that it now expects sales of its diagnostics products to grow in the low single digits this year, compared to its previous forecast of mid-single digit growth. Sales in China for diagnostic products declined by double digits in the second quarter. "We are now expecting a fairly meaningful pullback in the immunodiagnostics business in China," said CEO Prahlad Singh. China's hospital lab reimbursement policy changes tied to Diagnosis Related Groups (DRGs), have reduced demand for Revvity's higher-value diagnostic products and significantly hurt revenues. Medical device maker Abbott (ABT.N), opens new tab recently said its diagnostics division will be hit hardest, with a projected $700 million revenue impact in 2025 due to fading COVID test sales and pricing pressure from China's procurement program that buys medical devices in bulk at steep discounts. These changes, which took effect in late April, have prompted physicians to reduce their orders for multiplex diagnostic products used to test for multiple conditions simultaneously, Revvity said. Instead, healthcare providers are increasingly opting for single-plex tests - simpler, less comprehensive diagnostics that Revvity also supplies. Last week, larger peer Danaher (DHR.N), opens new tab reported improving conditions in China's pharma and biotech sectors, though it said diagnostics demand in the country remains under pressure. Thermo Fisher Scientific (TMO.N), opens new tab and Danaher both raised their annual profit forecasts. In contrast, Revvity said it expects adjusted profit per share for 2025 between $4.85 and $4.95, down from its previous projection of $4.90 to $5. Despite the hit, Revvity's second-quarter results aligned with industry peers and life sciences product sales reached $365.9 million, surpassing estimates of $353.9 million. The Massachusetts-based company expects full-year revenue of $2.84 billion to $2.88 billion, slightly above its prior forecast of $2.83 billion to $2.87 billion, aided by a weaker U.S. dollar.
Reuters
2 days ago
- Business
- Reuters
Revvity trims 2025 profit forecast on soft demand for diagnostics in China
July 28 (Reuters) - Medical equipment maker Revvity (RVTY.N), opens new tab on Monday lowered its full-year adjusted profit forecast as it expects demand for its diagnostics products in some international markets to remain soft, sending the company's shares down 8% premarket. The company, which makes more than 50% of its annual revenues from markets outside the United States, said sales of its diagnostics products in China, a key market, declined by double digits during the second quarter. Revvity said last quarter that it expected to take a $135 million hit from potential tariffs on China. It planned to adjust its manufacturing footprint and was in discussions with alternative suppliers, to mitigate impact from tariffs. The Massachusetts-based company now expects adjusted profit for 2025 between $4.85 and $4.95 per share, compared with its previous forecast of $4.90 to $5.00 per share. Analysts were expecting a profit of $4.93 per share, according to data compiled by LSEG. Revvity expects revenue of $2.84 billion to $2.88 billion for the full year, helped in part by a weaker U.S. dollar. It had previously forecast annual revenue of $2.83 billion to $2.87 billion and analysts were expecting $2.85 billion. The forecast cut from Revvity is in contrast to results from its peers Thermo Fisher Scientific (TMO.N), opens new tab and Danaher (DHR.N), opens new tab, which raised their annual profit forecasts last week. Second-quarter results, however, came in line with industry peers, as Revvity posted strong quarterly profit and sales of its life sciences products were $365.9 million, above estimates of $353.9 million. Thermo Fisher, Danaher and others have flagged robust demand across regions for their drug development products such as instruments and analytical tools used in trials and manufacturing, after two years of weak biotech funding.
Times
3 days ago
- Business
- Times
Activist investor steps up pressure on Smith & Nephew
The activist investor Cevian Capital has raised its shareholding in Smith & Nephew, increasing pressure on the FTSE 100 medical equipment maker before its half-year results. Filings show Cevian, one of Europe's biggest activist investors, has raised its stake to 8.5 per cent having first publicly emerged with a holding in July last year via a Jersey-based vehicle. Cevian, which had raised it to 7.5 per cent in February, is understood to be the largest shareholder. The stake building comes before half-year results from Smith & Nephew on August 5 where investors will look for signs of a turnaround in the performance of its orthopaedics division, the group's largest. The group remains committed to retaining the business, but following full-year results in February, John Rogers, Smith & Nephew's chief financial officer, outlined scenarios under which it could evaluate options.
Yahoo
4 days ago
- Business
- Yahoo
NovoCure Second Quarter 2025 Earnings: Beats Expectations
NovoCure (NASDAQ:NVCR) Second Quarter 2025 Results Key Financial Results Revenue: US$158.8m (up 5.6% from 2Q 2024). Net loss: US$40.1m (loss widened by 20% from 2Q 2024). US$0.36 loss per share (further deteriorated from US$0.31 loss in 2Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period NovoCure Revenues and Earnings Beat Expectations Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) also surpassed analyst estimates by 7.4%. Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Medical Equipment industry in the US. Performance of the American Medical Equipment industry. The company's shares are down 25% from a week ago. Risk Analysis Before we wrap up, we've discovered 1 warning sign for NovoCure that you should be aware of. 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
