GE HealthCare Stock Tumbles After Earnings Miss
GE HealthCare (GEHC) faced a significant setback as its shares plummeted by over 9% following the release of weaker-than-expected first-quarter results. The company reported a decline in revenue to $4.65 billion, missing analyst estimates of $4.81 billion. Sales in its Imaging, Ultrasound, and Patient Care Solutions segments all experienced a drop, with only the Pharmaceutical Diagnostics segment showing growth.
Despite the disappointing results, GE HealthCare’s net income increased slightly, but still fell short of analyst expectations. The company also saw a rise in research and development spending, particularly focusing on investments in technology like artificial intelligence (AI) to drive future innovation and enhancements.
GE HealthCare CEO Peter Arduini expressed optimism, noting progress in meeting 2024 goals and reaffirming the company’s full-year guidance. Despite the challenging start to the year, GE HealthCare is projecting revenue growth and adjusted earnings per share figures above last year’s results.
The news of the stock tumble comes amidst General Electric’s transition into three separate standalone companies, with GE HealthCare’s separation being finalized last year. While the stock saw a significant dip, shares have still managed to gain around 5% since the beginning of the year. The company remains focused on delivering on its objectives and addressing the evolving needs of customers and patients as it moves forward.
