GE HealthCare (NASDAQ:GEHC) Technologies Inc. has issued $1 billion in senior unsecured notes, the company disclosed in a filing with the Securities and Exchange Commission (SEC) on Thursday. The notes, carrying an interest rate of 4.8%, are due on August 14, 2029, with interest payments to be made semi-annually starting February 14, 2025.
The issuance is part of the company's shelf registration statement and the notes will rank equally with other senior unsecured debts. GE HealthCare Technologies, known for its X-ray and irradiation apparatus, will use the proceeds for general corporate purposes, although specific plans for the funds were not detailed in the SEC filing.
The company, headquartered in Chicago, Illinois, operates under the legal name GE HealthCare Technologies Inc. since its name change from GE Healthcare Holding LLC on June 3, 2022. The company's common stock is traded on The Nasdaq Stock Market under the ticker symbol GEHC.
In other recent news, GE HealthCare Technologies Inc. reported nearly matching Wall Street expectations in its second-quarter earnings, posting revenues of $4.84 billion and an earnings per share (EPS) of $1.00.
This performance was largely driven by strong results in the Pharmaceutical Diagnostics segment and robust demand in the U.S., resulting in a 3% growth in orders. Piper Sandler, in response, increased the stock's price target from $92.00 to $95.00, maintaining an Overweight rating on the company.
Despite facing market headwinds, particularly in China, GE HealthCare managed to report modest organic revenue growth and a 3% increase in orders for the second quarter of 2024.
The company maintained its EPS guidance for the year and raised its guidance for adjusted earnings before interest and taxes (EBIT) margin expansion. However, due to temporary market headwinds in China, the company lowered its full-year 2024 organic revenue growth guidance to 1-2%.
Notably, the company expects strong cash generation for the full year, despite a negative free cash flow of $182 million in Q2. Furthermore, Piper Sandler highlighted the potential for future growth due to various factors, including proposed broadening reimbursement support for radiopharmaceuticals and improved macro conditions for equipment purchases.
InvestingPro Insights
The recent issuance of senior unsecured notes by GE HealthCare Technologies Inc. reflects a key moment in the company's financial strategy. To provide a broader perspective on the company's financial health and market position, InvestingPro data offers valuable insights. GE HealthCare Technologies, with a market capitalization of $38.12 billion and a P/E ratio of 23.84, shows stability in its valuation metrics. The company's revenue for the last twelve months as of Q2 2024 stands at $19.52 billion, indicating a modest year-over-year growth of 2.52%. Moreover, with a gross profit margin of 40.96%, GE HealthCare demonstrates solid profitability in its operations.
InvestingPro Tips suggest that despite a recent downward revision of earnings by analysts, GE HealthCare is projected to remain profitable this year. The company's stock is known for low price volatility, which may appeal to investors seeking stable returns. Additionally, as a prominent player in the Healthcare Equipment & Supplies industry, GE HealthCare continues to maintain a significant market presence. For investors interested in a deeper analysis, there are over 11 additional InvestingPro Tips available, which can be found at: https://www.investing.com/pro/GEHC
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