July 30 (Reuters) - GE HealthCare Technologies ( GEHC )
raised annual profit forecast on Wednesday, as the medical
device maker expects a smaller hit from tariffs.
The company expects adjusted profit of $4.43 to $4.63 per
share for 2025, compared with its previous range of $3.90 to
$4.10 per share.
The forecast includes a 45-cent-per-share impact from
tariffs, which is lower than the 85 cents or $500 million hit it
expected in April.
Other medical device maker Boston Scientific ( BSX ) and
healthcare conglomerate Johnson & Johnson ( JNJ ), whose costs
were exclusively tied to its medtech unit, also halved their
expectations for tariff-related costs for the year to about $100
million and $200 million, respectively.
GE HealthCare ( GEHC ) expects annual organic revenue growth of 3%,
compared with its previous forecast of a 2% to 3% increase.
J.P.Morgan analyst Robbie Marcus said the company's outlook
was "good enough as a more in-line organic growth performance is
balanced against conservative tariff assumptions that could/will
likely leave upside on the table".
GE HealthCare ( GEHC ) also beat Wall Street estimates for
second-quarter profit and revenue, driven by growth in its all
four businesses.
Revenue at imaging devices, the company's largest segment,
grew 2% during the period. Its other units are advanced
visualization solutions, patient care solutions and
pharmaceutical diagnostics.
Medical device manufacturers have been benefiting from
still-high demand for elective surgical procedures in the United
States, especially among older adults.
GE HealthCare's ( GEHC ) total revenue came in at $5.01 billion
during the quarter ended June 30, compared with analysts'
average estimate of $4.96 billion, according to data compiled by
LSEG.
On an adjusted basis, it earned $1.06 per share, compared
with the estimate of 92 cents per share.
The company said its adjusted core margin was down 80 basis
points during the quarter, impacted by tariffs.