GE HealthCare Technologies posted its first quarter earnings as a public company Monday, while reaffirming earlier guidance on full-year profit just weeks after completing its spin-off from former parent General Electric (GE).
GE HealthCare said adjusted earnings for the three months ending in December, the newly-formed group's fiscal fourth quarter, were pegged at $1.31 per share, with revenues rising 8% from last year to $4.9 billion.
Looking into the 2023 financial year, GE HealthCare said it sees adjusted earnings in the region of $3.60 to $3.75 per share, while reaffirming organic revenue growth rates of between 5% and 7% for its medical equipment.
“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 CEO Peter Arduini. "Revenue growth reflects our progress to offset delivery challenges and improve product fulfillment."
"We're confident that our accelerated investment in innovation, as well as standardization across platforms, will drive revenue and margin growth," he added. "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."
GE HealthCare share were marked 0.7% lower in early Monday trading to change hands at $69.60 each.
GE finalized plans to spin-off the healthcare division in late November, with shareholders receiving one share of GE HealthCare for every three shares of the main group they own under a distribution that took place after the close of trading last night.
General Electric will retain a 19.9% stake in the newly-separated health care group in the form of common stock.
GE Vernova, the group's power and renewables division, will likely spun-out into the public markets through a tax-free deal in 2024, leaving GE Aerospace as the final piece of the group's breakup, trading on the NYSE under the traditional GE ticker.
Last week, GE posted stronger-than-expected fourth quarter earnings, but forecast weaker full-year profits as its energy business continues to drag on the industrial group's bottom line.
GE said it sees adjusted earnings in the region of $1.60 to $1.80 per share, well south of Refinitiv forecasts of a $2.36 per share tally, with organic sales growth in the 'mid-to-high' teens in terms of percentage gain.
Operating profits for GE Aerospace, its core division, were forecast in the range of $5.3 billion to $5.7 billion. GE Vernova, its energy business, will likely report a loss of between $200 million and $600 million.
