GE HealthCare beat Wall Street’s quarterly profit estimates in Q3 amid strong demand for its imaging products, the Chicago-based company announced on Tuesday.
Quarterly revenues from its imaging segment leapt 5% year-over-year, to $2.6 billion, driven by interest in its molecular imaging, CT and MR offerings. Leaders also highlighted other growth drivers including supply chain and pricing improvements, along with the introduction of new products.
Imaging earnings before interest and taxes were up 19% from the previous year, at $318 million (vs. $267 million). And the segment’s margin landed at 12.1% compared to 10.6% in Q3 of 2022.
“We delivered another strong quarter of revenue growth with margin performance demonstrating progress on productivity and price,” President and CEO Peter Arduini, MBA, said in an Oct. 31 announcement. “Cash performance was strong as we leveraged lean principles to improve inventory management. We remain confident in our 2023 outlook as we continue to innovate for customers and patients.”
Meanwhile, GE HealthCare’s ultrasound segment saw quarterly ultrasound revenues decline 1%, down to $815 million while earnings dropped 15% to $179 million. The company said planned investments, including in AI firm Caption Health, impacted this number, along with inflation. Ultrasound saw its EBIT profit margin fall year-over-year from 25.6% to 22% in Q3.
GE also highlighted “strong” revenue growth in its pharmaceutical diagnostics business, leaping 12% on an organic basis up to $589 million, buoyed by price increases and swelling sales volumes. Earnings climbed more than 4%, up to $166 million, while its profit margin fell from 30.5% to 28.2%, due to “raw material inflation and planned investments.”
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.