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Key Takeaways
- GE HealthCare shares rose Wednesday after the company reported better profits than expected for the second quarter.
- Revenue was roughly flat from the same time last year and just below analysts’ estimates.
- The company lowered its guidance for revenue growth for the full fiscal year, citing headwinds in China among other reasons.
GE HealthCare (GEHC) shares rose over 4% in early trading Wednesday after the company reported second-quarter profits that beat analysts’ estimates.
The former division of General Electric reported net income of $435 million, up slightly from the year-ago period and above expecations. Revenue of $4.84 billion was roughly flat from the year before and narrowly missed analyst estimates.
Sales Weakness in China Leads to Lower Revenue Growth Outlook
GE HealthCare CEO Peter Arduini said second-quarter sales were affected by headwinds in China, and that the company is projecting those headwinds to likely impact results for the year.
The company lowered its full-year revenue guidance to growth of between 1% and 2%, down from about 4% previously.
The change comes after Arduini said in the company’s first-quarter update earlier this year that GE HealthCare expected much of its growth for fiscal 2024 to come in the second half of the year.
GE HealthCare shares were up 4.6% to $86.48 as of 11:15 a.m. ET Wednesday, contributing to the stock’s nearly 12% gain so far this year.