What Will 2024 Look Like for GE HealthCare?

GE HealthCare entered into 2023 with a great deal of momentum. The Chicago-based company was freshly spun off from General Electric and wasted little time getting involved with M&A.

The firm’s 3Q23 earnings painted a similar picture of success – with the company beating Wall Street expectations for the quarter’s profits. However, with sluggish earnings per share and concerns over order growth dropping, some analysts are asking what GE HealthCare’s 2024 will look like.

In a research note, Ryan Zimmerman, an analyst with BTIG, wrote, “EPS comes in at $1.00 to $1.10 which falls below Consensus of $1.14 on a slower ramp in OMs and tougher 4Q comps. We had cautioned that Orders growth was likely to be weak; a combination of pressure in China and tougher comps specifically within Equipment Orders yet GE Healthcare was able to grow Orders better than feared. Mgmt. noted that China grew despite multiple peers seeing a slowdown. If China grew and GEHC did 1% Order growth, what was weaker? Management pointed to US Orders late in the quarter.”

Zimmerman added, “One other big question remains though; what will 2024 look like? With seemingly little indication on next year and fears around Order growth falling below LT revenue guidance (~3% vs. MSD) investors are left wondering.”

During an earnings call, Peter Arduini spoke about the company's view on just what 2024 would look like.

“So as we look ahead here, really going even into '24, we're expecting that to be kind of the first year with more of a normalized market environment since COVID, which we obviously view as very positive,” Arduini said according to a Yahoo Finance transcript of the earnings call.

GE Healthcare reported revenues of $4.8 billion increased 5% reported and 6% on an Organic basis year-over-year, driven by volume and price.

The company said revenue growth was driven by Molecular Imaging and Computed Tomography as well as Magnetic Resonance, due to supply chain improvements, price, and new product introductions.