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GE HealthCare forecasts 2024 profit largely above estimates

Published 02/06/2024, 07:27 AM
Updated 02/06/2024, 07:31 AM
© Reuters. Completed GE digital anesthesia carestation stand in a GE Healthcare manufacturing facility in Madison, Wisconsin, U.S. April 21, 2020. REUTERS/Daniel Acker/File Photo
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(Reuters) - GE HealthCare (NASDAQ:GEHC) forecast 2024 profit largely above Wall Street expectations and beat fourth-quarter profit estimates on strong demand for its imaging devices, sending the company's shares up 2% before the bell on Tuesday.

Demand for medical devices has seen a post-pandemic surge as customers, particularly older adults, in the United States are returning to hospitals for procedures such as hip and knee replacements.

Companies such as Johnson & Johnson (NYSE:JNJ) and Boston Scientific (NYSE:BSX) topped sales estimates in the medical devices segment during their quarterly results.

GE HealthCare has four medical device businesses - imaging, ultrasound, patient care solutions and pharmaceutical diagnostics - with imaging being the largest.

The company's imaging segment reported revenue of $2.83 billion, narrowly beating estimates of $2.82 billion, according to LSEG data.

On an adjusted basis, GE HealthCare expects an annual profit of $4.20 to $4.35 per share, the midpoint of which was above estimates of $4.22.

© Reuters. Completed GE digital anesthesia carestation stand in a GE Healthcare manufacturing facility in Madison, Wisconsin, U.S. April 21, 2020. REUTERS/Daniel Acker/File Photo

Excluding items, the company earned $1.18 per share in the fourth quarter, compared to estimates of $1.07.

GE HealthCare reported total revenue of $5.21 billion, beating analysts' expectations of $5.09 billion.

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