by
John R. Fischer, Senior Reporter | November 02, 2023
GE HealthCare's imaging business drove much of its revenue gains in Q3 2023.
In its third quarter, GE HealthCare saw 5% more revenue than in the previous year, driven in large part by its medical imaging division, and surpassed Wall Street expectations.
The company racked up $4.82 billion in revenue, with imaging, the largest of its medical device businesses, bringing in $2.64 billion.
According to Reuters, analysts projected the company would make $4.81 billion in Q3.
For imaging, revenue also increased 5%, driven primarily by supply chain improvements, pricing, and new product launches in molecular imaging, CT, and MR scanning.
“Cash performance was strong as we leveraged lean principles to improve inventory management. We remain confident in our 2023 outlook as we continue to innovate for customers and patients,” said GE HealthCare president and CEO Peter Arduini in a statement.
Because of this confidence, the company has raised the low end of its annual adjusted profit forecast from $3.70 to $3.75 per share and maintained its top end at $3.85.
A big growth point was Alzheimer’s testing, with the company saying in the previous month that it would push demand for imaging equipment at hospitals and medical centers over the next year. Just last month, CMS
removed its once-in-a-lifetime limit on Medicare coverage for amyloid PET scans used to diagnose Alzheimer’s, allowing for more reimbursement and potentially greater access to scans that initially could only be performed in clinical trials.
Declines in COVID-19 cases, especially in older adults, have made patients feel more at ease in returning to hospitals for care. Reductions in staffing shortages have also contributed to higher demands, reported Reuters.
The companies patient care solutions and pharmaceutical diagnostics divisions also saw 9% and 13% year-over-year increases in revenue, respectively, while its ultrasound division, which made $815 million, saw a 1% decline.
Cash flow from operating activities grew from $622 million to $650 million due to strong inventory management, and free cash flow was up $22 million year-over-year, at $570 million.
