What you need to know before GE HealthCare announces financial results

Key conclusions

GE HealthCare will report second-quarter financial results Wednesday morning. Analysts are expecting a slight increase in revenue but little change in profit from a year ago.
The report comes after disappointing first-quarter results that saw the company’s shares fall 14% in one session.
GE HealthCare can reveal new details about its investments in artificial intelligence (AI) following the recent announcement of an acquisition and partnership that aims to enhance the company’s AI capabilities.

GE HealthCare (GEHC) will release an earnings report before markets open on Wednesday, the last of three former General Electric units to report for the quarter, following GE Aerospace (GE) and GE Vernova (GEV).

Analysts are expecting a slight increase in revenue but little change in profit from a year ago, when GE HealthCare reported $418 million in net income, or 91 cents a share, on revenue of $4.82 billion.

	Analysts’ estimates for Q2 2024	Q1 2024	Q2 2023
Income	$4.9 billion	$4.65 billion	$4.82 billion
Diluted earnings per share	91 cents	81 cents	91 cents
Net income	418.52 million dollars	$374 million	$418 million

Key Metric: Revenue

Investors are likely to be watching GE HealthCare’s sales health after a surprising drop in first-quarter revenue compared with the same period last year, news that sent the stock down 14% in a single session in April.

However, the company reaffirmed its full-year outlook despite weak first-quarter results, with CEO Peter Arduini saying the bulk of GE HealthCare’s growth could come in the second half of the year.

Business Spotlight: AI Initiatives

GE HealthCare may provide more details about its investments in artificial intelligence (AI) in its earnings report following the recent announcement of an acquisition and partnership to enhance the company’s AI capabilities.

The company said this week it will partner with Amazon (AMZN) Web Services and its Bedrock AI model offering to “deliver all-new, purpose-built foundation models designed to accelerate the development of innovative healthcare applications.”

Earlier this month, GE HealthCare also announced the acquisition of Intelligent Ultrasound Group’s AI software division for about $51 million, expecting the deal to close by the end of the fourth quarter. The company said the addition of the division will help “improve workflows and increase ease of use for the benefit of clinicians and patients.”

GE HealthCare shares have lost about 9.5% of their value since the company failed to report a first-quarter profit, but have gained 4% since the start of 2024, closing at $80.50 on Friday.