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HomeMarketGE HealthCare Hosts an Analyst Event Today. Here's What to Expect.

GE HealthCare Hosts an Analyst Event Today. Here’s What to Expect.

Digital anesthesia care stations are shown at a GE factory in Madison, Wis., in 2020.

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Kamil Krzaczynski/Getty Images

A new multibillion-dollar company is about to be born. Investors will learn a lot more about it on Thursday.

GE HealthCare is the company. It’s being spun out from
General Electric
(ticker: GE) in just a few weeks. It is hosting an investor event in New York City that began at 8 a.m. Eastern time and should run until about 11:30 a.m.

Investors can expect the company to talk about how its diagnostic franchises can help doctors, nurses, and hospitals save time, money and improve patient outcomes.

Investors can also expect the company to explain how it plans to hit its goals. GE HealthCare expects to raise its operating profit margins to about 20% from “high-teens” percentage levels. Sales are expected to grow annually at a percentage in the “mid-single digits.” And more than 85% of net income should become free cash flow.

GE HealthCare has generated about $13.4 billion in sales so far in 2022. The company believes it operates in segments that total about $85 billion in annual sales. That addressable market should be $100 billion by 2025, according to the company.

More details of the company’s balance sheet should become available as well. In a 116-page investor presentation, GE HealthCare said it will start life with $1.8 billion in cash and a $3.5 billion credit facility available.

The company will be independent in the first week of January, when GE will finish spinning it out to shareholders. GE investors will receive one share of GE HealthCare for every three shares of GE held. GE HealthCare will trade under the stock symbol “GEHC.”

GE stock wasn’t reacting to the early parts of the presentation. Shares were up about 0.6% in premarket trading, while futures on the
S&P 500
and
Dow Jones Industrial Average
had risen 0.4% and 0.3%, respectively.

Coming into Thursday trading, GE stock was down about 10% so far this year.

Write to Al Root at allen.root@dowjones.com

Credit: marketwatch.com

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