Shares of GE HealthCare fell Tuesday morning, even as the health-tech giant beat revenue estimates for its first full quarter as a standalone company.
The company that It was officially discontinued earlier this year and reported net income of $372 million in the first quarter, compared to $389 million last year.
The health tech giant reported revenue of $4.7 billion, up 8 percent from last year. Earnings per share were $0.41, compared to $0.86 a year ago, due to noncontrolling interest redemptions on preferred stock. GE reported adjusted earnings per share of $0.85, compared with $0.96 a year earlier.
GE HealthCare’s board of directors also authorized a cash dividend of $0.03 for the first quarter. The company expects adjusted earnings per share of between $3.60 and $3.75. Last year, standalone adjusted earnings per share were $3.38.
“We saw strong revenue growth across all of our business segments and regions as supply chain challenges eased. We continue to expect organic revenue growth of 5% to 7% for 2023, driven by performance and commercial performance growth. Price and productivity had a positive impact on us. margin performance, positioning us well as we continue to invest in innovation and growth,” CEO Peter Arduini said in a statement.
THE BIGGER TREND
After completing its spinoff from General Electric, the company announced two acquisitions in the first quarter. In January, the company announced that it had signed a purchase agreement IMACTIS, developer of interventional guidance technology for computed tomography (CT). The deal recently closed.
The following month, GE HealthCare announced its plans buy Caption Health, maker of AI-enabled ultrasound guidance software. During the earnings call, Arduini said the purchase will allow more providers to offer ultrasounds outside of the hospital, starting with cardiac care.
“We expect this to spread to other professions in the future through other research and development investments,” he said.