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GE HealthCare forecasts upbeat 2025 profit on steady medical device demand
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GE HealthCare forecasts upbeat 2025 profit on steady medical device demand
Feb 13, 2025 4:59 AM

Feb 13 (Reuters) - GE HealthCare Technologies ( GEHC )

on Thursday forecast annual profit above Wall Street estimates,

counting on strong demand for its medical devices in markets

such as the U.S. to offset weakness in China.

Manufacturers of medical devices have been benefiting from

elevated demand for elective surgical procedures in the United

States, especially among older adults. German peer Siemens

Healthineers also posted strong quarterly revenue last

week.

GE HealthCare ( GEHC ) expects 2025 adjusted profit of between $4.61

and $4.75 per share, with the midpoint above analysts' average

estimate of $4.66 per share, according to data compiled by LSEG.

The forecast includes an estimated impact from recently

implemented U.S. tariffs on products from China, and the tariffs

will likely result in extra costs.

GE HealthCare ( GEHC ) also said the company's China sales will

remain under pressure in the near-term due to a delay in the

Asian country's 2024 stimulus as well as an anti-corruption

campaign targeting bribery involving doctors in drug and medical

equipment sales.

Its China sales declined 15% in 2024, while the U.S. and

Canada grew 5%.

The company's total sales in the fourth quarter came in at

$5.32 billion, compared with analysts' average estimate of $5.33

billion.

On an adjusted basis, GE HealthCare ( GEHC ) earned $1.45 per share,

compared with estimates of $1.26 per share.

The company's imaging devices unit is the largest among its

four segments. Its other three businesses are advanced

visualization solutions, patient care solutions and

pharmaceutical diagnostics.

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