GE Healthcare Technologies Inc. (NASDAQ:GEHC) is gearing up to reveal its third-quarter 2023 financial results on October 31, ahead of the market opening. In the previous quarter, the company exceeded expectations, with adjusted earnings per share of 92 cents, surpassing the Zacks Consensus Estimate by 6.98%. As we approach the upcoming announcement, let’s delve into the factors that are shaping the stage for GEHC.
Change in Landscape In January 2023, General Electric Company finalized the spinoff of its healthcare business, giving birth to a new contender in the realm of Precision Care. Starting from January 4, 2023, GE HealthCare began trading on the Nasdaq under the ticker symbol “GEHC.”
Factors at Play GE HealthCare is poised to unveil robust organic revenue growth in the third quarter, driven by a well-rounded performance across its segments. This growth is primarily propelled by continuous introductions of new products and the rising demand from customers. Moreover, the quarter may have witnessed an improvement in backlog fulfillment as supply challenges gradually abate. Enhanced pricing strategies and successful commercial execution are expected to further bolster the top-line performance for the third quarter.
Breaking it down by segments, the Imaging business is likely to benefit from healthcare providers’ ongoing investments in capacity worldwide, with the aim of enhancing patient care and productivity. A strong volume for surgical procedures is anticipated, which will in turn drive demand for Imaging. Supply chain fulfillment is expected to improve in the third quarter, and favorable pricing initiatives may contribute to overall revenue growth, reflecting the healthy demand for imaging solutions.
Within the Ultrasound segment, organic revenue growth in the third quarter is expected to be driven by strong performance in cardiovascular, general imaging, and women’s health products. This growth is attributed to the introduction of new products and the improvement in supply chain fulfillment. GEHC has previously noted that it anticipates strong customer demand in various healthcare settings throughout 2023.
In the Patient Care Solutions segment, the company is anticipated to experience organic revenue growth due to favorable volume and pricing. Similar to the second quarter, GEHC is expected to benefit from producing tools for highly constrained products in the third quarter.
The Pharmaceutical Diagnostics business is projected to deliver organic revenue growth, driven by favorable pricing, the recovery of global elective procedures, and supply stabilization.
However, the company’s overall strong commercial performance in the third quarter may have been offset by challenges posed by a difficult macroeconomic environment and currency headwinds.
As GEHC prepares to unveil its Q3 earnings, the market is keen to see how these various factors have played out and what insights they provide into the company’s performance within the healthcare sector.
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