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>>> GE HealthCare Reports First Quarter 2023 Financial Results


Business Wire

April 25, 2023


https://finance.yahoo.com/news/ge-healthcare-reports-first-quarter-102000825.html


1Q Revenue growth of 8% year-over-year; Organic revenue* growth of 12%

1Q Net income attributable to GE HealthCare of $372 million versus $389 million for the prior year, Adjusted EBIT* of $664 million versus $599 million

1Q Diluted EPS was $0.41 versus $0.86 in the prior year, Adjusted EPS* was $0.85 versus $0.96

Board of Directors declared a cash dividend of $0.03 per share for the first quarter of 2023


CHICAGO, April 25, 2023--(BUSINESS WIRE)--GE HealthCare (Nasdaq: GEHC), a leading global precision care innovator, today reported financial results for the first quarter ended March 31, 2023.

GE HealthCare President and CEO Peter Arduini said, "We saw strong revenue growth across all of our business segments and regions as supply chain challenges eased. We continue to expect 5% to 7% Organic revenue growth* for 2023 given increased fulfillment and commercial execution. Price and productivity had a positive impact on our margin performance, positioning us well as we continue to invest in innovation and growth."

First Quarter 2023 Total Financial Performance

Revenues of $4.7 billion increased 8% reported and 12% on an Organic basis* year-over-year. Foreign exchange negatively impacted growth by 4%. Total company book-to-bill, defined as Total orders divided by Total revenues, was 1.01 times for the quarter, given strong revenue growth across all segments, led by Pharmaceutical Diagnostics (PDx) recurring sales.

Net income attributable to GE HealthCare was $372 million versus $389 million for the prior year, and Adjusted EBIT* was $664 million versus $599 million.

Net income margin was 7.9% versus 9.0% for the prior year, down 110 basis points (bps) primarily impacted by interest expense. Adjusted EBIT margin* was 14.1% versus 13.8%, up 30 bps driven by volume, partially offset by mix. Inflation and planned investments were mostly offset by price and productivity actions. Adjusted EBIT margin* for the first quarter of 2023 grew 150 bps versus our estimated 1Q’22 Standalone Adjusted EBIT margin*.

Earnings per share (EPS) from continuing operations were $0.41 versus $0.86, down $0.45 from the prior year due to a noncontrolling interest redemption of preferred stock. Adjusted EPS* was $0.85 versus $0.96, down $0.11 from the prior year due to incremental interest expense. Adjusted EPS* for the first quarter of 2023 grew $0.22 versus our estimated 1Q’22 Standalone Adjusted EPS*.

Cash flow from operating activities was $468 million, flat year-over-year with working capital improvement, offset by incremental post-retirement benefit payments and interest. These items, coupled with increased capital expenditures, also impacted Free cash flow* of $325 million, which was down $46 million year-over-year.

First Quarter 2023 Segment Financial Performance

Imaging

Revenues of $2.5 billion increased 8% reported and 12% on an Organic basis* year-over-year.

Strong revenue growth was driven by Magnetic Resonance (MR) as well as Molecular Imaging and Computed Tomography (MICT), due to supply chain fulfillment improvements and new product introductions.

Segment EBIT was $191 million versus $206 million for the prior year.

Segment EBIT margin was 7.7% versus 8.9% for the prior year, as planned investments and mix outweighed higher volume; productivity and pricing initiatives more than offset inflation.

Ultrasound

Revenues of $859 million increased 5% reported and 10% on an Organic basis* year-over-year.

Solid revenue growth in cardiovascular, general imaging, and women's health products, with new product introductions and improving supply chain on backlog fulfillment.

Segment EBIT was $207 million versus $192 million for the prior year.

Segment EBIT margin was 24.1% versus 23.6% for prior year, improved through productivity, price, and volume, partially offset by inflation and planned investments, including Caption Health acquisition.

Patient Care Solutions

Revenues of $781 million increased 9% reported and 11% on an Organic basis* year-over-year.

Continued strong revenue growth with improved fulfillment, supply chain resiliency actions, and price.

Segment EBIT was $109 million versus $65 million for the prior year.

Segment EBIT margin was 14.0% versus 9.1% for the prior year, improved through productivity, price, and volume, partially offset by inflationary pressure and planned investments.

Pharmaceutical Diagnostics

Revenues of $558 million increased 15% reported and 19% on an Organic basis* year-over-year.

Strong revenue growth driven by price and volume.

Segment EBIT of $155 million versus $138 million for the prior year.

Segment EBIT margin was 27.8% versus 28.5% for the prior year, impacted by raw material inflation and planned investments, partially offset by price, volume, and productivity.

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