On Thursday, GE HealthCare Technologies projected a yearly profit surpassing Wall Street expectations, attributing this to robust demand for its medical devices in markets such as the U.S. to counterbalance weakening sales in China.
The surge in elective surgical procedures, specifically among elderly individuals in the United States, has been benefiting medical device manufacturers. Last week, German competitor Siemens Healthineers also reported positive results.
GE HealthCare anticipates an adjusted profit for 2025 ranging between $4.61 to $4.75 per share, with the midpoint exceeding analysts' average projection of $4.66 per share, as per LSEG data.
This outlook factors in the anticipated impact from recent tariffs imposed on products from China, with expectations of resulting in additional costs.
Additionally, GE HealthCare indicated that sales in China will remain challenging in the short term due to delays in the country's 2024 stimulus package and an ongoing anti-corruption campaign targeting bribery in medical equipment and drug sales involving doctors.
While the company experienced a 15% decrease in sales in China in 2024, sales in the U.S. and Canada saw a 5% increase.
In the fourth quarter, the company's total sales amounted to $5.32 billion, slightly below the analysts' average estimate of $5.33 billion.
Adjusted earnings for GE HealthCare were $1.45 per share, outperforming the estimated $1.26 per share.
The imaging devices unit is the company's largest segment, followed by advanced visualization solutions, patient care solutions, and pharmaceutical diagnostics.