GE HealthCare hosts 2024 Investor Day: focus on innovation to deliver precision care and drive growth
GE HealthCare hosted its 2024 Investor Day at Nasdaq MarketSite, highlighting its precision care strategy and financial progress. The company announced a 17% increase in quarterly dividend to $0.035 per share. GE HealthCare reiterated its 2024 outlook with organic revenue growth of 1-2% and presented medium-term targets for 2026-2028, including 4-6% organic revenue growth and high-teens to 20%+ adjusted EBIT margin. The company emphasized its focus on innovation, AI strategy, and radiopharmaceutical growth opportunities across its segments.
GE HealthCare ha ospitato il suo Investor Day 2024 presso il Nasdaq MarketSite, mettendo in evidenza la sua strategia di assistenza di precisione e i progressi finanziari. L'azienda ha annunciato un aumento del 17% del dividendo trimestrale a $0,035 per azione. GE HealthCare ha ribadito le sue previsioni per il 2024, con una crescita organica dei ricavi dell'1-2% e ha presentato obiettivi a medio termine per il 2026-2028, inclusi una crescita organica dei ricavi del 4-6% e un margine EBIT rettificato tra il 15% e oltre il 20%. L'azienda ha sottolineato il suo impegno per l'innovazione, la strategia sull'IA e le opportunità di crescita nei radiopharmaceuticals in tutti i suoi segmenti.
GE HealthCare llevó a cabo su Día del Inversor 2024 en Nasdaq MarketSite, destacando su estrategia de atención de precisión y su progreso financiero. La compañía anunció un aumento del 17% en el dividendo trimestral a $0.035 por acción. GE HealthCare reiteró su perspectiva para 2024, con un crecimiento orgánico de ingresos del 1-2% y presentó objetivos a medio plazo para 2026-2028, que incluyen un crecimiento orgánico de ingresos del 4-6% y un margen EBIT ajustado de entre el 15% y más del 20%. La compañía enfatizó su enfoque en la innovación, la estrategia de IA y las oportunidades de crecimiento en radiotecnología a través de todos sus segmentos.
GE 헬스케어는 2024년 투자자 데이를 나스닥 마켓사이트에서 개최하며 정밀 치료 전략과 재무 성과를 강조했습니다. 회사는 분기 배당금 17% 인상을 발표했습니다 주당 $0.035로. GE 헬스케어는 2024년 유기적 수익 성장률 1-2%를 재확인하며 2026-2028년 중기 목표를 발표했으며, 4-6% 유기적 수익 성장률 및 고 teens에서 20%+ 조정 EBIT 마진을 포함했습니다. 회사는 혁신, AI 전략, 및 모든 부문에서의 방사성 의약품 성장 기회에 중점을 두고 있음을 강조했습니다.
GE HealthCare a accueilli son Investor Day 2024 au Nasdaq MarketSite, mettant en avant sa stratégie de soins de précision et ses progrès financiers. L'entreprise a annoncé une augmentation de 17 % du dividende trimestriel à 0,035 $ par action. GE HealthCare a réaffirmé ses prévisions pour 2024 avec une croissance organique des revenus de 1-2% et a présenté des objectifs à moyen terme pour 2026-2028, y compris une croissance organique des revenus de 4-6% et une marge EBIT ajustée entre 15% et plus de 20%. L'entreprise a souligné son attention sur l'innovation, sa stratégie en IA et les opportunités de croissance des radiopharmaceutiques dans tous ses segments.
GE HealthCare hat seinen Investor Day 2024 am Nasdaq MarketSite veranstaltet und dabei seine Präzisionspflege-Strategie sowie den finanziellen Fortschritt hervorgehoben. Das Unternehmen gab eine Erhöhung der vierteljährlichen Dividende um 17% auf $0,035 pro Aktie bekannt. GE HealthCare bekräftigte seine Prognose für 2024 mit einem organischen Umsatzwachstum von 1-2% und präsentierte mittelfristige Ziele für 2026-2028, darunter 4-6% organisches Umsatzwachstum und eine angepasste EBIT-Marge im hohen Zehnerbereich bis über 20%. Das Unternehmen betonte seinen Fokus auf Innovation, die AI-Strategie und Wachstumschancen im Bereich Radiopharmazeutika in allen seinen Segmenten.
- 17% increase in quarterly dividend, showing financial strength
- Projected adjusted EBIT margin growth of 70-90 bps for 2024
- Strong free cash flow projection of approximately $1.8 billion for 2024
- Medium-term targets include 4-6% organic revenue growth and high-teens to 20%+ adjusted EBIT margin
- 2024 organic revenue growth trending toward lower end of 1-2% range
- Adjusted ETR trending toward lower end of 23-25% range
Insights
GE HealthCare's 2024 Investor Day reveals a mixed but strategically sound outlook. The organic revenue growth guidance of 1-2% for 2024 trending toward the lower end shows near-term headwinds, but the medium-term target of 4-6% growth by 2026-2028 demonstrates confidence in future expansion. The
The
The strategic emphasis on precision care and AI integration across devices, departments and enterprise levels positions GEHC well in the evolving healthcare landscape. The investment in radiopharmaceuticals, particularly in PET CT and MR imaging, targets high-growth market segments. The company's cloud-first approach and focus on disease-specific solutions demonstrate alignment with emerging healthcare trends toward personalized medicine and data-driven decision-making.
The robust R&D pipeline and commitment to innovation across all segments (Imaging, Advanced Visualization, Patient Care Solutions and Pharmaceutical Diagnostics) suggests strong product development momentum. The enterprise partnership strategy could lead to more stable, recurring revenue streams and deeper market penetration.
Company updates medium-term framework with progress toward financial goals; increases quarterly cash dividend by approximately
The event will feature presentations from GE HealthCare President and CEO Peter Arduini, GE HealthCare Vice President and CFO Jay Saccaro, and other members of the management team, who will discuss the company’s vision and precision care strategy, progress since its spin-off from General Electric Company in 2023, and key growth areas. A technology showcase will follow the presentations for in-person attendees.
GE HealthCare President and CEO Peter Arduini said, “We are confident in our progress since spin and our path to accelerate growth driven by an exciting innovation pipeline. We look forward to continuing to execute on our growth strategy to help clinicians provide more precise, personalized care for patients, delivering on our purpose to create a world where healthcare has no limits.”
GE HealthCare Vice President and CFO Jay Saccaro said, “Our resilient business model positions us well on our medium-term trajectory. In particular, we have made excellent progress expanding our margins with clear line of sight to delivering additional upside in the future. We are also delighted to announce that we are increasing our quarterly dividend by approximately
Members of the GE HealthCare leadership team will discuss how the company plans to drive growth and deliver on its precision care strategy, including:
- Financial and operational progress since spin
- Growth opportunities across the Imaging, Advanced Visualization Solutions, Patient Care Solutions, and Pharmaceutical Diagnostics segments
- A robust pipeline of innovation driven by significant research and development investments, with a focus on disease states to address key healthcare challenges
- Advancements in its cloud-first, AI and digital strategy focused on AI on device, at the department level, and across the enterprise
- Radiopharmaceutical growth opportunities with proprietary molecules and deep engineering expertise across PET CT and MR to deliver high-quality imaging
- Strength in its differentiated commercial strategy focused on strategic, long-term enterprise partnerships
- Optimizing lean initiatives to drive efficiencies, deliver solid margin expansion, and generate strong cash flow
- Disciplined capital allocation strategy that includes organic investment, strategic M&A, and returning value to shareholders
Financial framework
Today, GE HealthCare reiterated its 2024 outlook as follows:
|
2024 Outlook |
Organic revenue growth* |
trending toward the lower end of range |
Adjusted EBIT margin* |
|
Adjusted ETR* |
|
Adjusted EPS* |
|
Free cash flow* |
Approximately |
During today’s event, GE HealthCare will present its medium-term financial targets as follows:
|
Medium-term 2026-2028 targets |
Organic revenue growth* |
Mid-single digit ( |
Adjusted EBIT margin* |
High-teens to |
Adjusted EPS growth* |
High-single digit to low-double digit |
Free cash flow conversion* |
|
*Non-GAAP financial measure. |
|
The company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP financial measures in outlook section below for more details.
Cash dividend increase for fourth quarter 2024
The Board of Directors of the company today declared a cash dividend of
About GE HealthCare Technologies Inc.
GE HealthCare is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator, dedicated to providing integrated solutions, services, and data analytics to make hospitals more efficient, clinicians more effective, therapies more precise, and patients healthier and happier. Serving patients and providers for more than 125 years, GE HealthCare is advancing personalized, connected, and compassionate care, while simplifying the patient’s journey across the care pathway. Together our Imaging, Advanced Visualization Solutions, Patient Care Solutions, and Pharmaceutical Diagnostics businesses help improve patient care from diagnosis, to therapy, to monitoring. We are a
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Event webcast
GE HealthCare will broadcast the event live via webcast today starting at 8:00 am ET/7:00 am CT and it is expected to last approximately 3.5 hours. The webcast and accompanying slide presentation containing financial information can be accessed by visiting the Events and Reports page on GE HealthCare’s Investor Relations website at: https://investor.gehealthcare.com/events/event-details/ge-healthcare-investor-day-0. An archived version of the webcast will be available on the website after the call.
Non-GAAP financial measures in financial framework
The non-GAAP financial measures presented in this press release are supplemental measures of GE HealthCare’s performance and its liquidity that the company believes will help investors understand its financial condition, cash flows, and operating results, and assess its future prospects. When read in conjunction with the company’s
The company reports Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of the company’s established, ongoing operations, as well as provide insights into overall demand for its products and services. To calculate these measures, the company excludes the effect of acquisitions, dispositions, and foreign currency rate fluctuations.
The company reports earnings before interest and taxes (“EBIT”), Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, Adjusted net income margin, Adjusted earnings per share (“Adjusted EPS”), and Adjusted EPS growth rate to provide management and investors with additional understanding of its business by highlighting the results from ongoing operations and the underlying profitability factors, on a normalized basis. To calculate these measures the company excludes, the following adjustments as applicable: Interest and other financial charges - net, Net (income) loss attributable to noncontrolling interests, Non-operating benefit (income) costs, Benefit (provision) for income taxes and certain tax related adjustments, and certain non-recurring and/or non-cash items. GE HealthCare may from time to time consider excluding other non-recurring items to enhance comparability between periods. Adjusted EBIT margin and Adjusted net income margin are calculated by taking Adjusted EBIT, or Adjusted net income, divided by Total revenues for the same period.
The company reports Adjusted tax expense and Adjusted effective tax rate (“Adjusted ETR”) to provide investors with a better understanding of the normalized tax rate applicable to the business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. The company may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted ETR is Adjusted tax expense divided by income before income taxes less the pre-tax income adjustments referenced above.
The company reports Free cash flow and Free cash flow conversion to provide management and investors with an important measure of the ability to generate cash on a normalized basis and provide insight into the company’s flexibility to allocate capital. Free cash flow is Cash from (used for) operating activities - continuing operations, including cash flows related to the additions and dispositions of property, plant, and equipment (“PP&E”) and additions of internal-use software. Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the capital required for debt repayments. Free cash flow conversion is calculated by taking Free cash flow divided by Adjusted net income.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with
Non-GAAP financial measures in outlook
GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, Adjusted EPS growth, Free cash flow, and Free cash flow conversion based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. GE HealthCare does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or dispositions, timing and magnitude of restructuring activities, and revaluation of strategic investments, amongst other items. The timing and amounts of these items are uncertain and could have a substantial impact on GE HealthCare’s results in accordance with GAAP.
Forward-looking statements
This release contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “target,” “guidance,” “outlook,” and similar expressions. These forward-looking statements may include, but are not limited to, statements about our business and expected financial performance, financial condition, and results of operations, including revenue, revenue growth, profit, taxes, earnings per share, and cash flows, and the company’s outlook and medium-term financial targets; and the company’s strategy, innovation, initiatives, and investments. These forward-looking statements involve risks and uncertainties, many of which are beyond the company’s control. Factors that could cause the company’s actual results to differ materially from those described in its forward-looking statements include, but are not limited to, operating in highly competitive markets; the company’s ability to successfully complete strategic transactions; the actions or inactions of third parties with whom the company partners and the various collaboration, licensing, and other partnerships and alliances the company has with third parties; demand for the company’s products, services, or solutions and factors that affect that demand; management of the company’s supply chain and the company’s ability to cost-effectively secure the materials it needs to operate its business; disruptions in the company’s operations; changes in third-party and government reimbursement processes, rates, contractual relationships, and mix of public and private payers, including related to government shutdowns; the delayed
View source version on businesswire.com: https://www.businesswire.com/news/home/20241120478927/en/
GE HealthCare Investor Contact:
Carolynne Borders
(631) 662-4317
carolynne.borders@gehealthcare.com
GE HealthCare Media Contact:
Jennifer Fox
(414) 530-3027
jennifer.r.fox@gehealthcare.com
Source: GE HealthCare
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