GE HealthCare announced essentially flat organic growth in the first quarter of this year compared to Q1 last year and a 1% decrease in revenue year-over-year from $4.7 billion in 2023 to $4.65 billion in 2024, causing its stock price to plummet 14.3%.
The company reported a net income of $374 million in the first quarter compared with $372 million in the prior-year period and adjusted earnings before interest and taxes (EBIT) of $681 million in Q1 2024 versus $664 million in 2023’s first quarter.
Cash flow from operating activities was $419 million, down $49 million from the prior year, and free cash flow was $274 million, down $51 million from 2023. The company repaid $150 million of debt in the first month of the year.
Diluted earnings per share (EPS) were $0.81 compared with $0.41 in the prior-year period, and adjusted EPS was $0.90 versus $0.85.
The company reaffirmed its full-year 2024 guidance.
“We made good progress against 2024 priorities in the first quarter. We delivered margin expansion while continuing to invest in innovation to solve the evolving needs of customers and patients. This is reflected in our healthy backlog, orders growth, and positive book-to-bill,” GE HealthCare president and CEO Peter Arduini said in a statement.
“We also closed the acquisition of MIM Software earlier this month as we accelerate our precision care strategy. We expect to see business growth weighted toward the second half of 2024 consistent with our previous comments, and we remain on track to deliver our guidance for the year.”
THE LARGER TREND
At the European Society for Therapeutic Radiology and Oncology (ESTRO) 2024 Congress in Glasgow today, the company announced the launch of Revolution RT, an oncology-focused radiation therapy computed tomography offering designed to improve imaging accuracy.
The Chicago-based company has received numerous FDA clearances this year, including 510(k) clearance for its Portrait VSM. The monitor helps clinicians get a more accurate view of a patient’s vital signs.
Novii+, a maternal and fetal monitoring offering, also received clearance from the FDA. It consists of a wearable and wireless sensor that enables noninvasive measurement and display of fetal heart rate, maternal heart rate and uterine activity for pregnant patients at or beyond 34 weeks.
The health tech company also announced its acquisition of MIM Software in April, boosting its oncology, cardiology and neurology offerings.
Cleveland-based MIM Software provides remote software solutions for oncology, nuclear medicine, cardiac imaging and neuroimaging.
The company subsequently partnered with radiation therapy company Elekta to develop new software to improve clinicians’ experience and enable greater precision in treatment. The companies planned to create the offering using MIM Software’s imaging management platform.