GE HealthCare Tech raises 2023 profit forecast as supply chain woes ease
The X-ray and ultrasound machine maker managed to keep its costs in check while also seeing an improvement in production and pricing due to availability of electronic components, an issue it had been grappling with along with other industries.
GE HealthCare’s cost of products rose nearly 9% in the second quarter from a year ago, compared to a faster 11% growth in sales. A surge in demand for healthcare services is driving recovery in the purchase of capital intensive equipment.
Also read | Partnerships with system integrators key to reaching global base: GE Digital CEO Scott Reese
Johnson & Johnson and Abbott Laboratories, which make medical devices like heart stents and implants, surpassed quarterly profit estimates last week as patients underwent their delayed procedures.
GE HealthCare on Tuesday reported total quarterly sales of $4.8 billion, in line with analysts’ estimates. Of this, $2.6 billion came from sales of imaging devices such as magnetic resonance imaging (MRI) and $839 million from ultrasound devices.
Discover the stories of your interest
GE HealthCare is one of the three companies that split from General Electric earlier in January. The healthcare equipment firm operates four medical device businesses – imaging and ultrasound devices, patient care solutions and pharmaceutical diagnostics – with imaging being the largest.
On an adjusted basis, the medical device maker now expects 2023 profit of $3.70 to $3.85 per share, up from its previous forecast of $3.60 to $3.75 per share. Excluding items, GE HealthCare earned 92 cents per share in the quarter ended June, ahead of Refinitiv IBES estimates of 87 cents per share.
For all the latest Technology News Click Here