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Key Takeaways
- GE HealthCare will report earnings before the bell Wednesday, with analysts projecting revenue and profits to rise from the same time last year.
- In the prior quarter, the company lowered its full-year revenue growth projections, citing economic difficulties in China.
- The company has made a number of bets on AI technology, recently announcing an AI "Innovation Lab" to grow and showcase the projects.
GE HealthCare (GEHC) is set to report earnings Wednesday morning, with analysts projecting revenue and profits to rise from the same time last year.
Analysts expect the former General Electric division to report $4.87 billion in revenue, narrowly above last year's $4.82 billion, according to estimates compiled by Visible Alpha. Net income is expected to rise by a larger margin, about 22% to $458.34 million.
| Analyst Estimates for Q3 2024 | Q2 2024 | Q3 2023 | |
| Revenue | $4.87 billion | $4.84 billion | $4.82 billion |
| Earnings Per Share | $1.00 | 93 cents | 82 cents |
| Net Income | $458.34 million | $428 million | $375 million |
Key Metric: International Sales
After the company said in April that it expected sales growth to be weighted to the back half of 2024, it said in July that macroeconomic headwinds in China led it to lower projections for full-year revenue growth.
GE HealthCare trimmed its full-year revenue forecast to a range of 1% to 2% growth, down from roughly 4% previously. Stimulus programs in China announced last month could help address some of the headwinds GE HealthCare said would hamper sales.
Business Spotlight: AI Investments
GE HealthCare has made a number of investments and partnerships in the artificial intelligence (AI) sector this year, including a partnership with Amazon (AMZN) Web Services to develop AI healthcare tools.
Earlier this week, the company announced an "AI Innovation Lab" to speed up the growth of a number of its AI efforts like breast cancer detection software and AI "agents" with expertise in specific areas of care.
GE HealthCare shares have gained about 15% since the start of the year, at $88.90 as of Thursday's close.
Read the original article on Investopedia.
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