What to Expect From GE HealthCare's Q4 2024 Earnings Report
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Headquartered in Chicago, Illinois, GE HealthCare Technologies Inc. (GEHC) is a leading global innovator in medical technology and digital solutions, committed to advancing healthcare through cutting-edge imaging, diagnostics, and patient monitoring systems. Valued at $38.7 billion by market cap, GE HealthCare is poised to announce its fiscal Q4 earnings 2024 before the market opens on Thursday, Feb. 13.
Ahead of this event, analysts are expecting GE HealthCare to report a profit of $1.26 per share, up 6.8% from $1.18 per share in the year-ago quarter. The company holds an impressive track record of meeting or surpassing Wall Street's bottom-line estimates each of the last four quarters.
The company reported an adjusted EPS of $1.14 in the last reported quarter, surpassing the consensus estimates by 7.6%. GE HealthCare's Q3 performance exceeded expectations, driven by strong U.S. growth, particularly in Pharmaceutical Diagnostics, and improved margins.
For fiscal 2024, analysts expect the company to report EPS of $4.30, up 9.4% from $3.93 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 8.4% annually to $4.66.
GE HealthCare's shares have increased by 16.5% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 26.5% gains but outperforming the Health Care Select Sector SPDR Fund (XLV), which saw modest growth.
On Oct. 30, GE HealthCare's shares rose over 2% following the release of its Q3 earnings results. Revenue came in at $4.86 billion, which is in line with Wall Street's expectations and shows a slight year-over-year increase. The company also revised its full-year 2024 guidance, projecting organic revenue growth to be near the lower end of the 1% to 2% range, mainly due to ongoing weakness in China.
Adjusted EBIT margin is expected to be between 15.8% and 16%, marking a 70 to 90 basis point improvement over 2023, slightly below the prior guidance. Free cash flow is anticipated to be around $1.8 billion.
Analysts' consensus rating on GEHC stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among the 18 analysts covering the stock, 12 recommend a "Strong Buy," five give a "Hold" rating, and one analyst suggests a “Strong Sell.” This configuration is slightly more bullish than a month ago, with 11 “Strong Buy” ratings.
The average analyst price target for GEHC is $97.33, suggesting a potential upside of 14.9% from the current price levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.