GE Healthcare Q2 Earnings Down, But Beats Estimates; Ups FY23 Earnings Outlook


GE HealthCare Technologies Inc. (GEHC) on Tuesday reported lower earnings for the second quarter of fiscal 2023. However, revenue was up by 7 percent from last year. The company also increased its full-year earnings guidance.

Quarterly earnings dropped to $418 million from $485 million for the same period of the previous year.

Adjusted Earnings per share decreased to $0.92 from $1.15 last year.

Seven analysts polled by Thomson-Reuters expected the company to report earnings of $0.87 per share for the quarter. Consensus estimates typically exclude one-time items.

The adjusted EBIT decreased to $711 million compared to $719 million of last year.

Revenue, however increased to $4.82 billion from $4.48 billion for the same period of last year, on increased company orders that organically grew by 6 percent driven by ongoing global customer demand.

The Street estimate for revenue was $4.79 billion.

Looking forward to fiscal 2023, the company updated its outlook. It now expects to have EPS ranging from $3.70 to $3.85 compared to the previous range of $3.60 to $3.75. The Street estimate for EPS is $3.74.

It has revised it EBIT margin guidance to the range of 15 to 15.5 percent, representing an increase of 50 to 100 basis points over the 2022 Standalone Adjusted EBIT margin of 14.5 percent.

It now expects an organic revenue growth of 6 to 8 percent year over year compared to the previous range of 5 to 7 percent.

In pre-market activity, shares of GE Healthcare are trading at $80.75, up 0.15% or 0.12 cents on Nasdaq.

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