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GE HealthCare (NASDAQ:GEHC) shares fell premarket Tuesday after the health equipment maker reported lower-than-expected financials for Q1 2024 amid a drop in revenue due to pressure on its product volumes.
However, the company reaffirmed its full-year outlook, expecting its growth trajectory to be weighted towards the latter half of the year and highlighting its recent acquisition of AI and imaging solutions company MIM Software.
“We delivered margin expansion while continuing to invest in innovation to solve the evolving needs of customers and patients,” CEO Peter Arduini remarked ahead of the earnings call at 8:30 a.m. ET.
However, GEHC, GE’s (GE) healthcare spinoff, reported ~$4.7B in revenue for Q1 with a ~1% YoY drop as positive pricing changes were offset by decreases in product volumes. GEHC’s product sales fell ~3% YoY to $3.0B during the quarter, while service sales improved ~2% YoY to $1.6B.
In terms of segments, the company’s Imaging business contracted ~1%, adding $2.5B to the top line, while the Ultrasound segment added $824M with a ~4% YoY drop.
GEHC’s net income margin rose ten basis points to 8.0%, driven by productivity and pricing gains, while improved margins and lower interest costs sent non-GAAP earnings per share $0.05 higher from the year-ago quarter to $0.90, yet below consensus.
However, GE HealthCare (GEHC) reiterated its non-GAAP EPS outlook of $4.20–4.35 for this year, compared to $3.93 in 2023 and in line with $4.30 in the consensus.
