GE HealthCare (GEHC) to Report Q2 Earnings: What's in Store?
GE HealthCare Technologies Inc. GEHC is scheduled to report second-quarter 2023 results on Jul 25, before market open.
In the last reported quarter, the company’s adjusted earnings per share of 85 cents surpassed the Zacks Consensus Estimate by 7.59%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors at Play
In January 2023, General Electric Company announced the completion of the spinoff of its healthcare business to create a new player in the field of Precision Care. From Jan 4, 2023, GE HealthCare started to trade on Nasdaq under the ticker symbol “GEHC.”
GE HealthCare is expected to report strong organic revenue growth banking on balanced segmental performance. The quarter might have witnessed greater backlog fulfillment as supply challenges are gradually easing out. Further, improved pricing and successful commercial execution might have added to the top line in the second quarter.
GE HealthCare Technologies Inc. Price and EPS Surprise
GE HealthCare Technologies Inc. price-eps-surprise | GE HealthCare Technologies Inc. Quote
In terms of operating segments, Imaging revenue growth is expected to have been led by Magnetic Resonance as well as its molecular imaging entity, driven by supply-chain fulfillment improvements and growth in revenues from New Product Introductions (NPI).
On the first-quarter 2023 earnings call, the company talked about its expectation of continued high growth throughout the first half of 2023 that will normalize throughout the rest of the year. Further, GEHC initiated a rolling 13-week schedule to maximize factory output and customer satisfaction to improve working capital. All these should get reflected in the second-quarter results of the Imaging business.
Within Ultrasound, second-quarter organic revenue growth is expected to have been driven by strong performance of cardiovascular, general imaging and women’s health products on growing NPIs and improving supply chain fulfillment. The company had earlier noted that it expects to see strong customer demand in both hospital and other care settings through the months of 2023.
Within the Patient Care Solutions business, the company is expected to have witnessed organic revenue growth, banking on favorable volume and pricing. Similar to the first quarter, GEHC is expected to have benefited from tools-side production for highly constrained products in the second quarter. Revenues are also expected to have been driven by the launch of key Magnetic Particle Imaging, such as CARESCAPE Canvas and the P100 series of acute cure molecules Patient Care Solutions contributing to increased volume.
The company’s Pharmaceutical Diagnostics business is expected to have delivered organic revenue growth, driven by favorable price, increased procedures and stabilization of supply.
However, overall, a strong commercial performance in the second quarter might have been largely dented by a challenging macroeconomic environment and currency headwinds.
Q2 Estimates
The Zacks Consensus Estimate for the company’s second-quarter 2023 revenues is pegged at $4.77 billion.
The Zacks Consensus Estimate for the company’s second-quarter 2023 earnings per share is 86 cents.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter, per our model.
Mckesson MCK has an Earnings ESP of +1.93% and a Zacks Rank #2. The company will release first-quarter fiscal 2024 results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 4.48%. The Zacks Consensus Estimate for MCK’s fiscal first-quarter 2024 EPS indicates a rise of 0.5% from the year-ago reported figure.
Zimmer Biomet ZBH has an Earnings ESP of +2.34% and a Zacks Rank #2. The company is scheduled to release second-quarter 2023 results on Aug 1.
ZBH’s earnings surpassed estimates in all of the trailing four quarters, with the average surprise being 7.38%. The Zacks Consensus Estimate for ZBH’s second-quarter EPS is in line with the year-ago reported figure.
AmerisourceBergen ABC currently has an Earnings ESP of +0.86% and a Zacks Rank #2. ABC is scheduled to release third-quarter fiscal 2023 results on Aug 2.
ABC’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 3.14%. The Zacks Consensus Estimate for ABC’s fiscal 2023 third-quarter EPS indicates an improvement of 5.6% from the year-ago reported figure.
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AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report
McKesson Corporation (MCK) : Free Stock Analysis Report
Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report
GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report
