GE HealthCare (GEHC) to Report Q4 Earnings: What's in Store?

GE HealthCare Technologies Inc. GEHC is scheduled to report fourth-quarter 2023 results on Feb 6, before market open.

In the last reported quarter, the company’s adjusted earnings per share of 99 cents surpassed the Zacks Consensus Estimate by 11.2%.

Let’s take a look at how things might have shaped up prior to the 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 trading on Nasdaq under the ticker symbol “GEHC.”

GE HealthCare is expected to report strong organic revenue growth, banking on balanced segmental performance, driven by consistent new product introductions (NPIs) and growing customer demand. 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 fourth quarter.

In terms of operating segments, the Imaging business is expected to have benefited from health care providers’ continued investment in capacity globally to improve patient care and productivity. Volume is expected to have remained strong for surgical procedures, driving demand for Imaging. In the fourth quarter, the company is expected to have witnessed improvement in supply-chain fulfillment and favorable pricing initiatives positively impacting the top line. Overall, imaging demand is healthy, especially for Molecular Imaging, Computed Tomography and Magnetic Resonance, supporting top-line growth.

Within Ultrasound, fourth-quarter organic revenue growth is expected to have been driven by the 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 last three 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 third quarter, GEHC is expected to have benefited from tools-side production for highly constrained products in the fourth quarter.

The company’s Pharmaceutical Diagnostics business is expected to have delivered organic revenue growth, driven by favorable price, recovery of global elective procedures and stabilization of supply.

However, a strong commercial performance in the fourth quarter might have been largely dented by a challenging macroeconomic environment and currency headwinds.

GE HealthCare Technologies Inc. Price and EPS Surprise

GE HealthCare Technologies Inc. Price and EPS Surprise

GE HealthCare Technologies Inc. price-eps-surprise | GE HealthCare Technologies Inc. Quote

Q4 Estimates

The Zacks Consensus Estimate for the company’s fourth-quarter 2023 revenues is pegged at $5.09 billion.

The Zacks Consensus Estimate for the company’s fourth-quarter 2023 earnings per share is pinned at $1.07.

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 on earnings. However, this is not the case here, as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00% at present. 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 a few medical stocks worth considering, as these have the right combination of elements to come up with an earnings beat this reporting cycle.

Dentsply Sirona XRAY has an Earnings ESP of +6.43% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock fell 5.2% in the past year. XRAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 20.65%.

Merit Medical Systems MMSI has an Earnings ESP of +3.68% and a Zacks Rank of 2 at present.

The stock has risen 15% in the past year. MMSI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 14.41%.

AMN Healthcare Services AMN has an Earnings ESP of +3.42% and a Zacks Rank of 3 at present.

The stock fell 22.3% in the past year. AMN’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 12.66%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Just Released: Zacks Top 10 Stocks for 2024

Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.

See New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report

Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report

AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report

GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.