GE HealthCare Q1 Earnings & Sales Beat Estimates, Net Margin Rises

GE HealthCare GEHC reported first-quarter 2025 adjusted earnings per share (EPS) of $1.01, which beat the Zacks Consensus Estimate of 91 cents by 11%. Also, the bottom line improved 12.2% year over year.GAAP EPS in the quarter was $1.23, up 51.9% from the year-ago level. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)Shares of GEHC gained 4.6% during pre-market trading following better-than-expected earnings in the first quarter. The company’s shares have lost 13% so far this year against the industry’s 3.2% growth. The S&P 500 Index has decreased 6.4% in the same period.Image Source: Zacks Investment ResearchRevenue DetailsThe company reported revenues of $4.78 billion, up 3% year over year on a reported basis and 4% organically. The top line beat the Zacks Consensus Estimate by 2.5%. Total company orders increased 10% organically year over year.Revenues were driven by strength in the U.S. market across all segments, especially in the Imaging and Pharmaceutical Diagnostics segments.Segmental DetailsImagingRevenues from this segment totaled $2.14 billion, up 4% year over year on a reported basis and 5% organically.Segment EBIT was $199 million, up 20% year over year.Advanced Visualization SolutionsRevenues totaled $1.24 billion, up 1% year over year on a reported basis and 3% on an organic basis.Segment EBIT was $261 million, up 2% year over year.Patient Care SolutionsRevenues amounted to $753 million, up 1% year over year on a reported basis and 2% organically.Segment EBIT was $48 million, down 41% year over year.Pharmaceutical DiagnosticsRevenues totaled $632 million, up 6% year over year and 8% on an organic basis.Segment EBIT was $205 million, up 15% year over year.MarginsNet income margin was 11.8%, up 380 basis points from the prior year level, primarily attributable to benefits from productivity and pricing.Cumulative cash flow from operating activities at the end of the first quarter was $250 million compared with $419 million a year ago.Financial PositionGEHC exited the first quarter with cash, cash equivalents and investments of $2.47 billion compared with $2.89 billion in the previous quarter.Total assets increased to $33.59 billion from $33.09 billion on a sequential basis.2025 GuidanceGE HealthCare updated its earnings and organic revenue guidance for 2025.The company now expects adjusted EPS to be in the range of $3.90-$4.10, down from $4.61-$4.75 expected previously. The guide range indicates a decline of 9-13% year over year, reflecting the unfavorable impact of tariffs. Revenues are anticipated to grow 2-3% organically, reflecting continued demand for its products and services. The Zacks Consensus Estimate for 2025 EPS and revenues is pegged at $4.70 and $19.95 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 same medical industry are Fresenius Medical Care FMS, Masimo MASI and AdaptHealth AHCO.Fresenius Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 28.9% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.FMS’ earnings beat estimates in three of the trailing four quarters and met in one, delivering an average surprise of 15.67%. The company is expected to release first-quarter results next month.FMS’ shares have gained 10.3% so far this year.Masimo, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 20% for 2025.MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%. Its shares have risen 58.5% compared with the industry’s 3.9% growth year to date. The company is expected to release first-quarter results in May.MASI’s shares have lost 1.3% so far this year.AdaptHealth, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 16.7% for 2025.  The company’s earnings beat estimates in three of the trailing four quarters and missed in one, delivering a negative average surprise of 4.17%. The company is expected to release first-quarter results next month.AHCO's shares have lost 12.1% so far this year.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 Masimo Corporation (MASI): Free Stock Analysis Report Fresenius Medical Care AG & Co. KGaA (FMS): Free Stock Analysis Report AdaptHealth Corp. (AHCO): Free Stock Analysis Report GE HealthCare Technologies Inc. (GEHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks