GE Healthcare Expects 2024 Organic Revenue Growth Of 1%-2% Year-over-year Versus The Prior Guide Of Approximately 4%, Due To China Market Headwinds
Portfolio Pulse from Benzinga Newsdesk
GE Healthcare has revised its 2024 organic revenue growth forecast to 1%-2% year-over-year, down from the previous estimate of approximately 4%, due to challenges in the China market. The company expects an adjusted EBIT margin of 15.7% to 16.0%, an adjusted effective tax rate of 23% to 25%, and adjusted EPS of $4.20 to $4.35. Free cash flow is projected to be around $1.8 billion.
July 31, 2024 | 10:27 am
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GE Healthcare has lowered its 2024 organic revenue growth forecast to 1%-2% from approximately 4% due to challenges in the China market. Despite this, the company expects an adjusted EBIT margin of 15.7% to 16.0%, an adjusted effective tax rate of 23% to 25%, and adjusted EPS of $4.20 to $4.35. Free cash flow is projected to be around $1.8 billion.
The downward revision in revenue growth due to China market headwinds is likely to negatively impact investor sentiment in the short term. However, the company’s expectations for improved EBIT margins, EPS growth, and strong free cash flow may mitigate some of the negative impact.
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