Results: GE HealthCare Technologies Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders might have noticed that GE HealthCare Technologies Inc. (NASDAQ:GEHC) filed its second-quarter result this time last week. The early response was not positive, with shares down 7.1% to US$71.32 in the past week. It looks like a credible result overall - although revenues of US$5.0b were in line with what the analysts predicted, GE HealthCare Technologies surprised by delivering a statutory profit of US$1.06 per share, a notable 19% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for GE HealthCare Technologies from 19 analysts is for revenues of US$20.4b in 2025. If met, it would imply a credible 2.2% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decrease 5.9% to US$4.62 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.3b and earnings per share (EPS) of US$4.13 in 2025. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for GE HealthCare Technologies

There's been no major changes to the consensus price target of US$88.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on GE HealthCare Technologies, with the most bullish analyst valuing it at US$110 and the most bearish at US$73.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting GE HealthCare Technologies' growth to accelerate, with the forecast 4.4% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.6% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.2% per year. So it's clear that despite the acceleration in growth, GE HealthCare Technologies is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GE HealthCare Technologies' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GE HealthCare Technologies' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on GE HealthCare Technologies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for GE HealthCare Technologies going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - GE HealthCare Technologies has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.