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.