GE HealthCare EPS Expected to Rise Ahead of Q4 Earnings

GE HealthCare expects to report EPS of $1.26, up 6.8% YoY. Analysts believe the company will meet its fiscal targets, positively impacting its stock performance.

Date: 20-01-2025

AI Rating: 7

Earnings Per Share (EPS)
GE HealthCare is set to report a profit of $1.26 per share for Q4 2024, reflecting an increase of 6.8% from $1.18 per share in the same quarter last year. This is noteworthy as the company has a consistent history of meeting or exceeding Wall Street's estimates.

Moreover, the adjusted EPS for the previous quarter was reported at $1.14, which surpassed the consensus estimates by 7.6%. This positive trend strengthens the confidence of investors in the upcoming earnings announcements.

For the entire fiscal year of 2024, EPS is expected to reach $4.30, showing an increase of 9.4% from $3.93 in the prior year. Furthermore, EPS is projected to grow by 8.4% annually to $4.66 in fiscal 2025, indicating robust growth prospects.

Revenue Growth and Free Cash Flow (FCF)
The company recorded revenue of $4.86 billion for Q3, aligning with Wall Street's expectations and signifying slight year-over-year growth. However, the company has revised its full-year 2024 guidance anticipating organic revenue growth towards the lower end of the 1% to 2% range, primarily influenced by challenges in the Chinese market.

Additionally, GE HealthCare anticipates free cash flow of approximately $1.8 billion, which is an essential metric for assessing the financial health of the company.

Profit Margins
The adjusted EBIT margin is projected to be between 15.8% and 16%, which represents a modest improvement over the previous year, although slightly lower than prior guidance. This indicates effective cost management and operational efficiency.

The perspective from analysts remains cautiously optimistic, with a “Moderate Buy” consensus rating on GEHC stock. This moderately positive outlook is further supported by the average analyst price target of $97.33, suggesting a potential upside of 14.9% from current price levels.

Stocks: GEHC