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.