GE HealthCare sheds record 9% despite Q1 beat
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Despite reporting better-than-expected Q1 2023 results on Tuesday, GE HealthCareâs (NASDAQ:GEHC) decision to reiterate its 2023 outlook has not excited Wall Street, with its shares trading ~9% lower, the worst intraday performance since its public debut early this year.
The healthcare spinoff of General Electric (GE) reported $4.7B in revenue for the quarter, indicating ~8% YoY growth on a reported basis backed by its imaging business, where revenue rose ~8% YoY to $2.5B amid new product introductions and supply chain improvements.
Meanwhile, Ultrasound and Patient Care Solutions added $859M and $781M revenue for the topline with ~5% YoY and ~9% YoY growth, respectively, and the companyâs Pharmaceutical Diagnostics unit generated $558M revenue with ~15% YoY growth.
âWe saw strong revenue growth across all of our business segments and regions as supply chain challenges eased,â Chief Executive Peter Arduini said, adding that the company continues to expect its organic revenue growth to reach 5 â 7% for 2023.
âPrice and productivity had a positive impact on our margin performance, positioning us well as we continue to invest in innovation and growth,â Arduini added, even as GEHCâs net income margin indicated a decline of 110bps to 7.9%.
While the adjusted EBIT margin improved by 30bps from the prior-year period to 14.1%, the adj. EBIT climbed ~11% YoY to $664M, and net income attributable to GE HealthCare (GEHC) fell ~4% YoY to $372M.
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