Latest news with #profitforecast
Yahoo
2 hours ago
- Business
- Yahoo
GE HealthCare Tops Estimates, Lifts Profit Outlook on Smaller Tariff Impact
Key Takeaways GE HealthCare beat estimates for the second quarter on Wednesday and raised its full-year profit forecast. However, the outlook is still below where it was at the start of the year due to the expected tariff impact. Sales rose across all four of GE HealthCare's segments in the HealthCare (GEHC) on Wednesday reported better second-quarter results than analysts had expected and lifted its outlook for the full year. The former General Electric division said it generated $5 billion in revenue and earned $1.06 per share, each up from the same time a year ago and better than the analyst consensus compiled by Visible Alpha. Sales rose across all four of GE HealthCare's segments in the quarter. The company said it now expects organic revenue growth of about 3% this year, narrowed from its previous range of 2% to 3%. Adjusted earnings per share are now forecast from $4.43 to $4.63, up from $3.90 to $4.10, with the new range including an expected headwind from tariffs of about 45 cents, down from 85 cents previously. While the tariff impact is smaller than what GE HealthCare expected last quarter, the company's adjusted EPS range is still below where it was at the start of the year. GE HealthCare topped estimates last quarter and announced a new stock buyback plan, outweighing the lowered profit forecast. Each of the other two former GE divisions, GE Aerospace (GE) and GE Vernova (GEV), beat estimates in their own second-quarter results earlier this month. Despite the solid results, GE HealthCare shares were down about 2% shortly ahead of markets opening. Read the original article on Investopedia
Reuters
3 hours ago
- Business
- Reuters
Humana raises annual profit forecast as medical costs stabilize
July 30 (Reuters) - Humana (HUM.N), opens new tab raised its annual profit forecast after beating quarterly estimates on Wednesday, as the U.S. health insurer succeeded in keeping its medical costs in check, in contrast to several of its rivals who recently slashed their expectations. The company said its strong quarterly performance was also driven by better-than-expected membership in individual Medicare Advantage plans and strength in its primary care segment CenterWell. Its shares rose nearly 7% in premarket trading. "Following several reductions to guidance, we think this increase will be received positively, as the company's 2025 repricing actions appear to be having their intended effect," said J.P. Morgan analyst Lisa Gill. Larger competitor UnitedHealth (UNH.N), opens new tab flagged underestimation of medical costs on Tuesday, and also provided a full-year profit forecast that fell short of analysts' already diminished estimates. Humana reported a quarterly medical cost ratio - the percentage of premiums spent on medical care - of 89.7%, up from 88.9% a year earlier, but in line with analysts' estimates of 89.71%. The industry has been battling with stubbornly high costs for the last two years due to increased use of healthcare services across government-backed plans. Humana is the top provider of Medicare Advantage plans under which the U.S. government pays private insurers a set rate to manage healthcare for people aged 65 and older, and those with disabilities. CEO Jim Rechtin said the company was confident in the growth outlook for Medicare Advantage and value-based care. "We feel good about our solid performance in the first half of the year." The health insurer said it remained optimistic that its pricing of the Medicare Advantage plans for 2025 will drive margin improvement. It also expects membership decline in the plans to be lower than previously anticipated. Humana projected full-year profit to be about $17 per share, compared with its previous estimate of about $16.25. Analysts on average were expecting a profit of $16.38 per share, as per LSEG data. For the second quarter, the company earned a profit of $6.27 per share, topping estimates of $5.92.
Yahoo
3 hours ago
- Business
- Yahoo
GE HealthCare raises annual profit forecast on smaller tariff impact
(Reuters) -GE HealthCare Technologies raised annual profit forecast on Wednesday, as the medical device maker expects a smaller hit from tariffs. The company expects adjusted profit of $4.43 to $4.63 per share for 2025, compared with its previous range of $3.90 to $4.10 per share. The forecast includes a 45-cent-per-share impact from tariffs, which is lower than the 85 cents or $500 million hit it expected in April. Other medical device maker Boston Scientific and healthcare conglomerate Johnson & Johnson, whose costs were exclusively tied to its medtech unit, also halved their expectations for tariff-related costs for the year to about $100 million and $200 million, respectively. GE HealthCare expects annual organic revenue growth of 3%, compared with its previous forecast of a 2% to 3% increase. analyst Robbie Marcus said the company's outlook was "good enough as a more in-line organic growth performance is balanced against conservative tariff assumptions that could/will likely leave upside on the table". GE HealthCare also beat Wall Street estimates for second-quarter profit and revenue, driven by growth in its all four businesses. Revenue at imaging devices, the company's largest segment, grew 2% during the period. Its other units are advanced visualization solutions, patient care solutions and pharmaceutical diagnostics. Medical device manufacturers have been benefiting from still-high demand for elective surgical procedures in the United States, especially among older adults. GE HealthCare's total revenue came in at $5.01 billion during the quarter ended June 30, compared with analysts' average estimate of $4.96 billion, according to data compiled by LSEG. On an adjusted basis, it earned $1.06 per share, compared with the estimate of 92 cents per share. The company said its adjusted core margin was down 80 basis points during the quarter, impacted by tariffs. Sign in to access your portfolio
Reuters
4 hours ago
- Business
- Reuters
Insurer Humana raises annual profit forecast as medical costs stabilize
July 30 (Reuters) - Humana (HUM.N), opens new tab raised its annual profit forecast on Wednesday, as the U.S. health insurer bets on its efforts to rein in higher medical costs that have plagued the sector, sending its shares up nearly 5% in premarket trading. The company is a top provider of Medicare Advantage plans under which the U.S. government pays private insurers a set rate to manage healthcare for people aged 65 and older, and those with disabilities. The industry has been battling with persistently high costs for the last two years due to increased use of healthcare services across government-backed plans. However, Humana said its medical costs were in line with its expectations. "We feel good about our solid performance in the first half of the year," CEO Jim Rechtin said in a statement. It reported a quarterly medical cost ratio - the percentage of premiums spent on medical care- of 89.7%, up from 88.9% a year earlier, but in line with analysts' estimates of 89.71%. The company said its quarterly performance was partly driven by better-than-expected membership in its individual Medicare Advantage (MA) plans, as well as strength in its primary care segment CenterWell. Humana expects membership decline in its MA plans to be lower than previously anticipated and said it remains confident that its insurance pricing will drive margin improvement. The company on Wednesday projected full-year profit to be about $17 per share, compared with its previous estimate of about $16.25. Analysts on average were expecting a profit of $16.38 per share, as per data compiled by LSEG. For the quarter, Humana earned a profit of $6.27 per share, compared to estimates of $5.92.
Yahoo
5 hours ago
- Business
- Yahoo
Insurer Humana raises annual profit forecast, shares climb
(Reuters) -Humana raised its annual profit forecast on Wednesday, as the U.S. health insurer bets on its efforts to rein in higher medical costs that have plagued the sector, sending its shares up nearly 6% in premarket trading. The company is a top provider of Medicare Advantage plans under which the U.S. government pays private insurers a set rate to manage healthcare for people aged 65 and older, and those with disabilities. The industry has been battling with persistently high costs for the last two years due to increased use of healthcare services across the government-backed plans. However, Humana said its medical costs were in line with its expectations. It reported a quarterly medical cost ratio - the percentage of premiums spent on medical care- of 89.7%, up from 88.9% a year earlier, but in line with analysts' estimates of 89.71%. Humana now expects full-year profit to be about $17 per share, compared with its previous estimate of about $16.25. Analysts on average were expecting a profit of $16.38 per share. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
