Why Is GE HealthCare Stock Trading Soaring On Thursday?

On Thursday, GE HealthCare GEHC reported fourth-quarter adjusted EPS of $1.45, up from $1.18 a year ago, beating the consensus of $1.26.

The company reported sales of $5.32 billion, almost in line with the consensus of $5.33 billion, up 2% on both a reported and organic basis year-over-year. Revenue growth was driven by Advanced Visualization Solutions (AVS) and Pharmaceutical Diagnostics (PDx), with overall strength in the U.S.

It clocked 2024 revenues of $19.7 billion, which increased by 1% on both a reported and Organic basis year-over-year. Revenue growth in the U.S. and in PDx was partially offset by continued market softness in China.

Total company book-to-bill was 1.09 times. Total company orders increased 6% organically year-over-year.

Also Read: GE HealthCare And DeepHealth Team Up To Advance AI-Powered Breast Cancer Screening: Details

Net income attributable to GE HealthCare was $720 million compared to $403 million a year ago, and Adjusted EBIT was $994 million compared to $837 million.

GE HealthCare President and CEO Peter Arduini said, “We were pleased with the strong momentum in orders, backlog and book-to-bill that we saw in the fourth quarter. We also continued to deliver revenue growth driven by demand in our Advanced Visualization Solutions and Pharmaceutical Diagnostics businesses, with overall strength in the U.S., and robust margin expansion and earnings growth.”

Guidance: GE HealthCare introduces 2025 full-year guidance, which includes the estimated impact of recently implemented U.S. tariffs on products from China.

• The company expects organic revenue growth of 2% to 3% year over year, reflecting continued demand for products and services and a measured view of market conditions in China.
• Adjusted EBIT margin is expected to be 16.7%-16.8%.
• The company expects adjusted EPS of $4.61-$4.75 compared to the consensus of $4.66, with free cash flow of at least $1.75 billion.

Price Action: GEHC stock is up 9.01% at $93.64 at the last check Thursday.

Read Next:

Photo: PixelBiss via Shutterstock