GE HealthCare GEHC reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.45, which beat the Zacks Consensus Estimate of $1.26 by 15.1%. Also, the bottom line improved 22.9% year over year.

GAAP EPS in the quarter was $1.57, up 78.4% from the year-ago level.

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Shares of GEHC gained 0.7% during pre-market trading following better-than-expected earnings in the fourth quarter. The company’s shares have gained 3% in the past six months compared with the industry’s 12.8% growth. The S&P 500 Index has increased 11.8% in the same period.

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Revenue Details

The company reported revenues of $5.32 billion, up 2% year over year on a reported as well as organic basis. The top line, however, missed the Zacks Consensus Estimate by 0.2%. Total company orders increased 6% organically year over year.

Revenues were driven by strength in the U.S. market across all segments, especially in Advanced Visualization Solutions and Pharmaceutical Diagnostics segments.

Full-Year Details

For full-year 2024, GEHC reported revenues of $19.67 billion, up 1% year over year on a reported as well as organic basis. Adjusted EPS improved 14.2% to $4.49.

Segmental Details

Imaging

Revenues from this segment totaled $2.39 billion, flat year over year reportedly as well as organically.

Segment EBIT was $302 million, up 19% year over year.

Advanced Visualization Solutions

Revenues totaled $1.44 billion, up 4% year over year reportedly as well as organically.

Segment EBIT was $374 million, up 15% year over year.

Patient Care Solutions

Revenues amounted to $827 million, flat year over year reportedly as well as organically.

Segment EBIT was $106 million, down 4% year over year.

Pharmaceutical Diagnostics

Revenues totaled $646 million, up 9% year over year as well as on an organic basis.

Segment EBIT was $212 million, up 47% year over year.

Margins

Net income margin was 13.5%, up 580 basis points from the prior-year level, primarily due to benefits from productivity and pricing.

Cumulative cash flow from operating activities at the end of the fourth quarter was $1.96 billion compared with $2.1 billion a year ago.

Financial Position

GEHC exited the fourth quarter with cash, cash equivalents and investments of $2.89 billion compared with $3.57 billion in the previous quarter.

Total assets decreased to $33.08 billion from $33.86 billion on a sequential basis.

2025 Guidance

GE HealthCare provided its earnings and organic revenue guidance for 2025.

The company expects adjusted EPS to be in the range of $4.61-$4.75, indicating growth of 3-6% year over year. Revenues are anticipated to grow 2-3% organically, reflecting continued demand for its products and services. The Zacks Consensus Estimate for EPS and revenues is pegged at $4.65 billion and $20.38 billion, respectively.

GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise

GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. Quote

Zacks Rank and Stocks to Consider

GEHC carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks from the medical industry are Cardinal Health CAH, Masimo MASI and Merit Medical Systems MMSI.

Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 5.1% for fiscal 2025. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CAH’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 9.64%. Its shares have gained 19.5% in the past six months compared with the industry’s 4.1% growth.

Masimo, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 6.6% for 2025. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 44.9% over the past six months compared with the industry’s 1.7% growth.

Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 12%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.42%. Its shares have risen 19.3% over the past six months compared with the industry’s 4.1% growth.

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