Should You Buy, Sell, or Hold GE Healthcare Before Q2 Earnings?

GE HealthCare Technologies Inc. GEHC is scheduled to report second-quarter 2025 results on July 30, before market open.In the last reported quarter, the company delivered an earnings surprise of 10.99%. GEHC’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.92%.Q2 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $4.97 billion, implying growth of 2.8% year over year.The Zacks Consensus Estimate for earnings per share is pinned at $0.91, suggesting a decline of 9% from the prior-year level.GEHC’s Segmental OverviewGE HealthCare’s Imaging segment remains the company’s cornerstone for revenue and margin growth heading into the second quarter. In the first quarter, Imaging delivered 5% organic revenue growth, with strength concentrated in the United States. The segment also posted a 130-basis point year-over-year expansion in EBIT margin, supported by improved productivity, higher volumes, and favorable pricing. Continued investment in R&D and sustained demand across large enterprise accounts in the United States and EMEA regions are expected to carry that momentum into the second quarter, despite ongoing weakness in China.Advanced Visualization Solutions(AVS) continued to perform steadily, achieving 3% organic revenue growth year over year in the first quarter. The U.S. market drove most of this growth, particularly in advanced ultrasound and interventional guidance technology. EBIT margin for the segment expanded slightly by 10 basis points, aided by volume leverage and productivity improvements. With a growing focus on digital tools and AI integration and the company’s increasing push toward recurring revenue, this segment is expected to maintain a stable trajectory in the second quarter.Patient Care Solutions(PCS) showed signs of improvement on the revenue side, with organic growth of 2% in the first quarter of 2025 compared to the same period last year. Growth was driven by better backlog execution, particularly in U.S. monitoring solutions. However, the segment’s EBIT margin declined by 450 basis points year over year, largely due to the impact of tariffs, continued investment, and an unfavorable product mix. As GE HealthCare works to launch new higher-margin products and streamline its factory and supplier base, modest revenue growth is anticipated in the second quarter. However, margin recovery may take longer to materialize.Pharmaceutical Diagnostics(PDx) delivered one of the strongest performances across the portfolio in the first quarter. The segment recorded 8% organic revenue growth and maintained an EBIT margin above 32%. Growth was supported by increased procedure volumes and positive pricing dynamics. GE HealthCare also launched its new radiopharmaceutical Flyrcado during the quarter and saw ongoing strength from Vizamyl. Additionally, the completion of its acquisition of the remaining stake in Nihon Medi-Physics is expected to contribute around $150 million of inorganic revenue through the rest of the year. As demand for PET imaging grows and reimbursement trends remain favorable, the segment is well-positioned for another strong performance in the soon-to-be-reported quarter.GE HealthCare Technologies Inc. Price and EPS Surprise GE HealthCare Technologies Inc. price-eps-surprise | GE HealthCare Technologies Inc. QuoteOther Factors to NoteOne of the most important overhangs for GE HealthCare heading into the second quarter is the impact of tariffs. The company expects approximately 85 cents in adjusted EPS drag from tariffs for the full year, with the majority of that hitting in the second, third, and fourth quarters. For the second quarter alone, GEHC anticipates a tariff-related impact of just under $100 million. Management has already implemented several mitigation strategies, such as duty drawback programs and supply chain optimization, but the lag from high-cost inventory running through the P&L will remain a headwind. Investors will likely look for updates on how further mitigation efforts are progressing and how those are shaping expectations for the remainder of the year.Innovation remains a central theme for GEHC’s long-term growth narrative. The company officially launched Flyrcado, its PET imaging tracer for coronary artery disease, and received CMS pass-through reimbursement in April. Early adoption trends and expansion of its radiopharmaceutical manufacturing network will be areas of investor interest. Additionally, GEHC is on track for regulatory submission of its photon-counting CT system later this year, a technology that promises higher resolution imaging and improved diagnostics. With robust clinical and product pipelines in place, any new updates on launch timelines or commercial traction may influence the outlook for second-half growth.What the Zacks Model UnveilsOur proven model does not conclusively predict an earnings beat for GEHC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Zacks Rank: The company carries a Zacks Rank #3 at present.Stocks Worth a LookHere are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:GeneDx Holdings WGS has an Earnings ESP of +5.26% and a Zacks Rank #2. The company is slated to release second-quarter 2025 results on July 29.WGS’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 145.82%. The Zacks Consensus Estimate for the company’s second-quarter EPS is expected to increase 190.9% from the year-ago quarter figure.Cencora COR has an Earnings ESP of +1.49% and a Zacks Rank #2. The company is set to release third-quarter fiscal 2025 results on Aug. 6.COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%. The Zacks Consensus Estimate for COR’s fiscal third-quarter EPS is expected to surge 13.2% from the year-ago reported figure.Cardinal Health CAH has an Earnings ESP of +0.72% and a Zacks Rank #2. The company is slated to release fourth-quarter fiscal 2025 results on Aug. 12.CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%. The Zacks Consensus Estimate for the company’s fiscal fourth-quarter EPS is expected to increase 10.3% from the year-ago quarter figure.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 Cardinal Health, Inc. (CAH): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report GE HealthCare Technologies Inc. (GEHC): Free Stock Analysis Report GeneDx Holdings Corp. (WGS): 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