HealthCare's Results Exceed Expectations, Yet Profit Projection is Slashed due to Tariffs
GE HealthCare Slashes Full-Year Profit Forecast Due to Tariff Woes
Breaking some grim news, GE HealthCare Technologies (GEHC) has lowered its full-year profit forecast, all thanks to those darn tariffs!1
In a twist of unfortunate events, the medical devil-maker reported better-than-anticipated first-quarter results, with adjusted earnings per share of $1.01 on a 3% revenue surge year-over-year to $4.78 billion. Analysts predicted a mere $0.92 and $4.66 billion, respectively.
$0.85-Per-Share Tariff Blues
But guess what? GE HealthCare is now expecting a profit hit of $0.85 per share due to the tariff game, which leads to a revised full-year adjusted EPS forecast of $3.90 to $4.10. The company's previous range had sat at a cozy $4.61 to $4.75. It still aims for organic revenue growth of 2% to 3%.
"We're actively tackling the adverse global trade environment," says CEO Peter Arduini. "Despite the challenges, strong customer demand persists in many markets, and we're geared up to deliver long-term value as we invest in future innovations."
In a separate announcement, the company revealed its board has green-lighted a stock buyback plan worth up to a cool billion dollars.
Waking up to the trading floor on Wednesday, GE HealthCare shares rose 3%, despite losing around 13% of their value since the beginning of the year.
Last week, GE's former family, GE Vernova (GEV) and GE Aerospace (GE), topped first-quarter estimates and stood firm on their full-year outlooks.
UPDATED-Share price information has been refreshed.
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- The tariff woes have led GE HealthCare Technologies (GEHC) to revise its full-year adjusted EPS forecast, expecting a profit hit of $0.85 per share.
- Despite the challenges posed by the adverse global trade environment, GE HealthCare aims for organic revenue growth of 2% to 3%.
- In an effort to deliver long-term value, GE HealthCare's CEO, Peter Arduini, states they are actively mitigating the impact of the trade environment by investing in future innovations.
- Separately, GE HealthCare's board has approved a stock buyback plan worth up to a billion dollars.
- On the trading floor, GE HealthCare shares rose 3% on Wednesday, despite losing around 13% of their value since the beginning of the year.
- Last week, GE's former family businesses, GE Vernova (GEV) and GE Aerospace (GE), reported better-than-anticipated first-quarter results and maintained their full-year outlooks.
