On Wednesday, Jefferies adjusted the price target for GE HealthCare (NASDAQ:GEHC) Technologies Inc. (NASDAQ:GEHC) to $92, up from the previous $92, while keeping a Hold rating on the stock. The firm's decision followed after GE HealthCare reported its second-quarter 2024 results, with sales reaching $4.84 billion, marking a modest 1% organic growth compared to consensus estimates of $4.88 billion. The earnings per share (EPS) for the quarter stood at $1.00, which is a 9% increase and slightly above the consensus estimate of $0.98.
The company also noted a year-over-year order increase of 3%. Despite these positive indicators, GE HealthCare revised its full-year 2024 sales guidance to a growth of 1-2% on an organic basis, a decrease from the previous estimate of around 4% and below the consensus of approximately 3.5%. This revision was attributed to a 17% decline in China's market during the quarter.
However, GE HealthCare raised its guidance for earnings before interest and taxes (EBIT) margin expansion to 60-90 basis points, an improvement from the previous 50-80 basis points. The EPS forecast for the full year remains unchanged at $4.20 to $4.35, representing a 7-11% increase, which aligns with the consensus estimate of $4.27.
In the statement from Jefferies, the analyst indicated a positive outlook for the second half of the year, considering the risks associated with the China market have been addressed. The analyst also expressed approval of the company's progress in margin improvement, suggesting a stable path forward for GE HealthCare.
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