GE HealthCare Q4 Earnings Beat Estimates, Sales Miss, Net Margin Rises

GE HealthCare GEHC reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.45, which beat the Zacks Consensus Estimate of $1.26 by 15.1%. Also, the bottom line improved 22.9% year over year.GAAP EPS in the quarter was $1.57, up 78.4% from the year-ago level.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Shares of GEHC gained 0.7% during pre-market trading following better-than-expected earnings in the fourth quarter. The company’s shares have gained 3% in the past six months compared with the industry’s 12.8% growth. The S&P 500 Index has increased 11.8% in the same period.Image Source: Zacks Investment ResearchRevenue DetailsThe company reported revenues of $5.32 billion, up 2% year over year on a reported as well as organic basis. The top line, however, missed the Zacks Consensus Estimate by 0.2%. Total company orders increased 6% organically year over year.Revenues were driven by strength in the U.S. market across all segments, especially in Advanced Visualization Solutions and Pharmaceutical Diagnostics segments.Full-Year DetailsFor full-year 2024, GEHC reported revenues of $19.67 billion, up 1% year over year on a reported as well as organic basis. Adjusted EPS improved 14.2% to $4.49.Segmental DetailsImagingRevenues from this segment totaled $2.39 billion, flat year over year reportedly as well as organically.Segment EBIT was $302 million, up 19% year over year.Advanced Visualization SolutionsRevenues totaled $1.44 billion, up 4% year over year reportedly as well as organically.Segment EBIT was $374 million, up 15% year over year.Patient Care SolutionsRevenues amounted to $827 million, flat year over year reportedly as well as organically.Segment EBIT was $106 million, down 4% year over year.Pharmaceutical DiagnosticsRevenues totaled $646 million, up 9% year over year as well as on an organic basis.Segment EBIT was $212 million, up 47% year over year.MarginsNet income margin was 13.5%, up 580 basis points from the prior-year level, primarily due to benefits from productivity and pricing.Cumulative cash flow from operating activities at the end of the fourth quarter was $1.96 billion compared with $2.1 billion a year ago.Financial PositionGEHC exited the fourth quarter with cash, cash equivalents and investments of $2.89 billion compared with $3.57 billion in the previous quarter.Total assets decreased to $33.08 billion from $33.86 billion on a sequential basis.2025 GuidanceGE HealthCare provided its earnings and organic revenue guidance for 2025.The company expects adjusted EPS to be in the range of $4.61-$4.75, indicating growth of 3-6% year over year. Revenues are anticipated to grow 2-3% organically, reflecting continued demand for its products and services. The Zacks Consensus Estimate for EPS and revenues is pegged at $4.65 billion and $20.38 billion, respectively.GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. QuoteZacks Rank and Stocks to ConsiderGEHC carries a Zacks Rank #4 (Sell) at present.Some better-ranked stocks from the medical industry are Cardinal Health CAH, Masimo MASI and Merit Medical Systems MMSI.Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 5.1% for fiscal 2025. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CAH’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 9.64%. Its shares have gained 19.5% in the past six months compared with the industry’s 4.1% growth.Masimo, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 6.6% for 2025. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 44.9% over the past six months compared with the industry’s 1.7% growth.Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.42%. Its shares have risen 19.3% over the past six months compared with the industry’s 4.1% growth.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Cardinal Health, Inc. (CAH): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI): Free Stock Analysis Report GE HealthCare Technologies Inc. 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