Monday, March 27, 2023
HomeMarketGE HealthCare's First Solo Earnings Are Strong. It's Bullish on the Future.

GE HealthCare’s First Solo Earnings Are Strong. It’s Bullish on the Future.

GE HealthCare announced solid results for the fourth quarter of 2022, the first it has reported as a standalone company.

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Kamil Krzaczynski/Getty Images

Shares of
GE HealthCare Technologies
have been strong performers so far in 2023. That is set to continue after the company reported its first quarter as a standalone, publicly traded, company.

On Monday, GE HealthCare (ticker: GEHC) reported fourth-quarter adjusted earnings per share of $1.31 and operating income of $844 million from sales of just more than $4.9 billion.

It’s difficult to say what Wall Street was looking for because only one analyst has picked up coverage of GE HealthCare stock since the company was spun out of
General Electric
(GE) on Jan. 3.

On Jan. 19, Redburn analyst Ed Ridley-Day initiated coverage of GE HealthCare stock with a Buy rating. Reported fourth-quarter sales were in line with his estimate.

The company’s numbers shouldn’t be a surprise. It is now an independent company, but GE posted GE HealthCare figures for the final time when it reported earnings on Jan. 24.

What’s more, GE HealthCare gave full-year 2023 guidance on Jan. 10. It expects sales to grow between 5% and 7% and operating profit margins to fall between 15% and 15.5%. That implies 2023 sales and operating profit of roughly $19.4 billion and $3 billion respectively.

The company added a little more to its guidance Monday. Earnings per share are expected to come in between $3.60 and $3.75 for 2023. That’s an improvement from the $3.38 GE HealthCare would have earned if it was a standalone company in 2022.

“GE HealthCare delivered strong revenue growth in the fourth quarter and full-year 2022 driven by robust end-market demand, improved pricing, and easing supply-chain pressures,” said GE Healthcare CEO Peter Arduini in a news release. “We’re seeing customers continue to invest along with macroeconomic tailwinds, such as increasing healthcare digitization, expanding access to care, and an aging population globally. We are well positioned to deliver on our 2023 commitments.”

The company’s shares were up 0.6% in premarket trading. The overall market was lower.
S&P 500
Dow Jones Industrial Average
futures were down 1.1% and 0.8%, respectively.

GE HealthCare stock started the year trading at $58.38. It closed this past Friday at $70.08, up about 20% so far this year.

Management hosts a conference call at 8 a.m. eastern time to discuss results. Analysts and investors will have a chance to ask about the supply-chain problems that affected results in 2022.

Write to Al Root at


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