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Key Takeaways
- GE HealthCare shares rose Wednesday morning after the former General Electric Segment posted a third-quarter earnings beat.
- Revenue was roughly in line with estimates, nearly flat year-over-year as the company said sales weakness in China has continued.
- Profits grew 25% from last year, as CEO Peter Arduini said the company’s “ongoing lean initiatives” are boosting profit margins.
GE HealthCare (GEHC) reported better profits than expected for the third quarter as its sales were roughly in line with estimates.
The medical technology manufacturer said Wednesday it generated $4.86 billion in revenue in the quarter, up slightly from $4.82 billion a year ago and roughly in line with the $4.87 billion analysts were expecting.
GE HealthCare also reported $470 million in net income, up 25% year-over-year and above the $441.8 million analysts had projected, according to estimates compiled by Visible Alpha.
The company’s results are similar to last quarter, when profits also beat estimates but revenue was nearly flat. GE HealthCare said at the time that macroeconomic weakness in China was negatively impacting sales.
In the third quarter, the company said strong sales in the U.S. and its pharmaceutical diagnostics segment, where sales grew 6% year-over-year, were offset by “continued market softness” in China.
Headwinds in China led the company to say it is trending toward the lower end of its 1% to 2% full-year revenue growth projection. GE HealthCare also lifted the floor of ranges for its profit projections as CEO Peter Arduini said the company’s “ongoing lean initiatives” are improving profit margins.
GE HealthCare shares were up 1.1% Wednesday morning to $86.20.