GE HealthCare Technologies expects annual profit to surpass Wall Street estimates, driven by robust demand for medical devices in the U.S. markets, mitigating the impact of Chinese market weakness.
Following the trend of elevated demand for elective surgical procedures, particularly among the aging population in the U.S., GE HealthCare projects an adjusted profit ranging from $4.61 to $4.75 per share in 2025, with the midpoint exceeding the analysts' average estimate of $4.66 per share.
The forecast takes into account the potential effects of recently implemented U.S. tariffs on Chinese products, which are likely to increase costs for GE HealthCare.
However, the company anticipates ongoing challenges in China due to delays in the 2024 stimulus rollout and an anti-corruption campaign targeting bribery in the medical industry. In 2024, China sales decreased by 15%, while U.S. and Canada sales increased by 5%.
In the fourth quarter, GE HealthCare reported total sales of $5.32 billion, slightly lower than the $5.33 billion average estimate. On an adjusted basis, earnings per share reached $1.45, exceeding the $1.26 estimate.
The company's imaging devices division contributes the largest share among its four segments, followed by advanced visualization solutions, patient care solutions, and pharmaceutical diagnostics.