GE Healthcare reported a mixed quarter before Wednesday's opening bell. While revenue slightly missed, an earnings beat along with a number of other positives pushed the stock higher. Revenue rose just under 1% year over year to $4.
86 billion in the third quarter, just short the $4.87 billion expected, according to analyst estimates compiled by LSEG. Organic revenue growth of 1% matched expectations.
Adjusted earnings per share in Q3 jumped 15% to $1.14, outpacing the LSEG consensus estimate of $1.05, thanks to ongoing cost optimizations, particularly at the gross margin level.
Management raised the midpoint of full-year earnings guidance despite the continued in weakness in China that has been hampering top-line organic growth. GEHC YTD mountain GE Healthcare YTD We also like how 2025 is setting up for GEHC, with stimulus in China still working its way into the market, a newly approved drug used in radiology, Flyrcado, becoming commercially available, and indications of market share gains based on a readthrough from a competitor. We're bumping up our price target to $95 per share from $92 but keeping our 2 rating on the stock.
Bottom Line Results were mixed, but it comes as no surprise that the quarter was negatively impacted by weakness in China. Excluding business in the world's second-largest economy, reported ex-China sales were up about 5%, with ex-China organic order growth up 4% versus the prior year. In the U.
S., CEO Peter Arduini commented on the call that "strong o.