#HealthCares #Profit #Beats #Estimates #China #Sales #Struggle
Key takeaways
- Shares of GE HealthCare rose Wednesday morning after the former General Electric division posted profits in the third quarter.
- Revenue was roughly in line with estimates, and roughly flat year over year as the company said weak sales in China persisted.
- Profits rose 25% from a year ago, with CEO Peter Arduini saying the company’s “continued lean initiatives” were working to boost profit margins.
GE HealthCare (GEHC) reported better-than-expected third-quarter earnings as its sales were roughly in line with estimates.
The medical technology maker said Wednesday that it had revenue of $4.86 billion in the quarter, up slightly from $4.82 billion a year ago and roughly in line with analysts’ expectations of $4.87 billion.
GE HealthCare also reported net income of $470 million, up 25% year over year and above analysts’ expectations of $441.8 million, according to estimates compiled by Visible Alpha.
The company’s results are similar to last quarter, when earnings also beat estimates but revenue was roughly flat. GE HealthCare said at the time that China’s macroeconomic weakness was negatively impacting sales.
In the third quarter, the company said strong sales in the US and pharmaceutical diagnostics segment, where sales grew 6% year-over-year, were offset by “continued market weakness” in China.
Headwinds in China prompted the company to say it is on the lower end of its full-year revenue growth forecast of 1% to 2%. GE HealthCare also raised the lower end of its earnings forecast ranges as CEO Peter Ardoini said the company’s “continued lean initiatives” were improving profit margins.
GE HealthCare shares rose 1.1% Wednesday morning to $86.20.
#HealthCares #Profit #Beats #Estimates #China #Sales #Struggle
