GE HealthCare’s stock slipped Tuesday morning even as the health technology giant beat earnings estimates during its first full quarter as an independent company.
The company, which officially spun off early this year, reported $372 million in net income in the first quarter compared with $389 million in the prior-year period.
The health tech giant reported revenue of $4.7 billion, an 8% increase from last year. Earnings per share were $0.41 compared with $0.86 in the prior-year period due to a noncontrolling interest redemption of preferred stock. GE reported adjusted earnings per share of $0.85 compared with $0.96 last year.
GE HealthCare’s board of directors also authorized a cash dividend of $0.03 per share for the first quarter. Looking ahead at the full year, the company expects adjusted earnings per share between $3.60 to $3.75. Standalone adjusted earnings per share was $3.38 last year.
“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,” CEO Peter Arduini said in a statement.
THE LARGER TREND
After completing its spinoff from General Electric, the company announced two acquisitions in the first quarter. In January, the company said it had entered into an agreement to purchase IMACTIS, developer of computed tomography (CT) interventional guidance technology. The deal recently closed.
The following month, GE HealthCare announced plans to purchase Caption Health, maker of AI-enabled ultrasound guidance software. During an earnings call, Arduini said the purchase will allow more types of providers to perform ultrasounds outside of the hospital, starting with cardiac care.
“We expect to extend this to other specialties in the future through other R&D investment,” he said.