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GE HealthCare misses quarterly revenue estimates on weakness in China market
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GE HealthCare misses quarterly revenue estimates on weakness in China market
Apr 30, 2024 5:24 AM

April 30 (Reuters) - GE HealthCare Technologies ( GEHC )

missed first-quarter revenue estimates on Tuesday, hurt by lower

sales in China market and weaker-than-expected demand for its

scanning devices, sending its shares tumbling as much as 12%

before the bell.

The medical device maker's revenue from China market, which

constitutes nearly 13% of its total revenue, dropped more than

11% in the quarter ended March 31.

"Many of GE HealthCare's ( GEHC ) suppliers were noting weakness in

China last quarter, so it makes some sense that we would see

that come through (to this quarter)," BTIG analyst Ryan

Zimmerman said.

The company, at an investor conference last month, had said

it expects a sales decline in China during the first half of the

year. It expects to see growth in the second half with the end

of the Chinese government's anti-corruption campaign that began

last year.

The company is also facing pressure from the Chinese

government's volume-based procurement, under which the country

buys drugs and medical devices in bulk at a sharp discount.

GE HealthCare's ( GEHC ) total sales came in at $4.65 billion in the

quarter, missing LSEG estimates of $4.8 billion.

Sales at its imaging unit - the largest among the company's

four segments - were $2.47 billion, also below analysts'

estimate of $2.61 billion.

The company's three other units are ultrasound, patient care

solutions and pharmaceutical diagnostics.

On an adjusted basis, it earned $0.90 per share in the first

quarter, compared with the $0.91-per-share estimated.

GE HealthCare ( GEHC ), however, maintained its full-year adjusted

profit-per-share forecast in the range of $4.20 to $4.35.

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