GE Healthcare reports increased revenue growth in Q2

GE HealthCare, which officially spun off early this year, announced it is raising its full-year guidance range amid increased demand and ease of supply chain woes. 

The company reported $418 million in net income in the second quarter compared with $485 million in the prior-year period and revenue of $4.8 billion, a growth of 7% year-over-year and a 9% organic revenue growth.  

The health tech giant reported adjusted earnings before interest and taxes (EBIT) of $711 million versus $719 million in the prior year. 

Company orders increased 6% organically year-over-year, while cash flow from operating activities was $67 million compared to $19 million, down $48 million from the prior year due to standalone interest and post-retirement benefit payments.

Earnings per share (EPS) were $0.91 compared with $1.04 in the prior-year period, and adjusted EPS was $0.92 versus $1.15, down $0.23 from the prior year.  

“With markets improving globally and strong execution in the first half of 2023, we have confidence in our ability to deliver on the full year. As a result, we’re raising our full-year guidance range for organic revenue growth by one percentage point and 10 cents in adjusted EPS at the midpoint,” CEO Peter Arduini said during the company’s Q2 2023 earnings call. 

THE LARGER TREND

After completing its spinoff from General Electric in January, the company announced two acquisitions, the first being IMACTIS, developer of computed tomography (CT) interventional guidance technology. 

The following month, the company announced plans to purchase Caption Health, maker of AI-enabled ultrasound guidance software. 

In May, GE HealthCare announced it received FDA 510(k) clearance for its Precision DL software, which utilizes deep learning (a subset of AI and machine learning) to improve image quality on the company’s PET/CT, Omni Legend, and allows for faster scanning time and improved small lesion detection.