GE HealthCare reported its third-quarter earnings today, noting revenue of $4.8 billion, a 5% year-over-year revenue growth and 6% organic revenue growth, seeing its stock price rise.
The company, which officially spun out of GE earlier this year, reported $375 million in net income compared to $487 million compared to the prior-year period, with a net income margin of 7.8% versus 10.6%, respectively.
Adjusted earnings before interest and taxes (EBIT) were $744 million in the third quarter compared to $700 million in the same quarter last year.
The tech giant’s health division reported cash flow from operating activities at $650 million versus $622 million, up $28 million year-over-year, which the company attributes to strong inventory management.
Free cash flow was $570 million, an increase of $22 million from the last year.
“We delivered another strong quarter of revenue growth with margin performance demonstrating progress on productivity and price. 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,” GE HealthCare President and CEO Peter Arduini said in a statement.
THE LARGER TREND
Since its official launch in January, GE HealthCare has reported a steady stream of revenue at $4.7 billion in Q1 and $4.8 billion in Q2.
The company has acquired Caption Health, maker of AI-enabled ultrasound guidance software, and French company IMACTIS, developer of computed tomography (CT) interventional guidance technology.
It received FDA 510(k) clearance for its Precision DL deep learning image processing software and Portrait Mobile, its smartphone-sized wireless monitoring solution.
In September, GE HealthCare announced it co-developed an AI algorithm with Mass General Brigham to help with scheduling predictions and formed a strategic partnership with Mayo Clinic, through which the pair will collaborate on research and product development focusing on precision care, AI and theranostics.
The company also received a $44 million grant from the Bill and Melinda Gates Foundation to design AI-enabled applications and tools to assist less experienced health professionals in low- and middle-income countries with performing ultrasound scans for fetal and maternal health and respiratory diseases.
The tech-enabled healthcare company also signed a $44 million contract with the Biomedical Advanced Research and Development Authority (BARDA) to develop AI-enabled point-of-care ultrasound technology to help clinicians diagnose and treat lung pathologies and traumatic injuries to the head, chest and abdomen.