GE HealthCare Technologies has posted third-quarter earnings that beat expectations and revised its full-year guidance, sending its shares higher on Tuesday.
The Chicago-based medical devices company, which was spun out of General Electric (NYSE:GE) in January, reported the bulk of its revenue from its Imaging operation, which grew revenues by 5% to $2.6 billion on the back of supply chain improvements, pricing, and new product innovations.
Revenues from its Ultrasound unit dipped marginally, while Patient Care Solutions grew revenues by 9% due to improvements in supply chain fulfillment and progress on price, the company said. Pharmaceutical Diagnostics grew revenues by 13%.
Overall, group revenues rose 5% to $4.82 billion, ahead of the $4.81 expected by Wall Street analysts.
Adjusted earnings per share declined 18% to $0.99 but beat the $0.90 expected by the Street.
“We delivered another strong quarter of revenue growth with margin performance demonstrating progress on productivity and price,” commented the company’s president and CEO Peter Arduini.
“Cash performance was strong as we leveraged lean principles to improve inventory management.
The company has guided for full-year organic revenue growth of 6% to 8%.
Adjusted EPS is expected to be between $3.75 and $3.85 after it raised the lower end of the range from the $3.70 it previously expected.
The company’s shares traded 5.6% higher at $66.70 by noon in New York.
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