Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at GE HealthCare (NASDAQ: GEHC) and its peers.
The medical devices and supplies industry, particularly those specializing in imaging and diagnostics, operates with a comparatively stable yet capital-intensive business model. Companies in this space benefit from consistent demand driven by the essential nature of diagnostic tools in patient care, as well as recurring revenue streams from consumables, service contracts, and equipment maintenance. However, the industry faces challenges such as significant upfront development costs, stringent regulatory requirements, and pricing pressures from hospitals and healthcare systems, which are increasingly focused on cost containment. Looking ahead, the industry should enjoy tailwinds from advancements in technology, including the integration of artificial intelligence to enhance diagnostic accuracy and workflow efficiency, as well as rising demand for imaging solutions driven by aging populations. On the other hand, headwinds could arise from a rethinking of healthcare costs potentially resulting in reimbursement cuts and slower capital equipment purchasing. Additionally, cybersecurity concerns surrounding connected medical devices could introduce new risks and complexities for manufacturers.
The 4 medical devices & supplies - imaging, diagnostics stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
While some medical devices & supplies - imaging, diagnostics stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.4% since the latest earnings results.
Best Q4: GE HealthCare (NASDAQ: GEHC)
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ: GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
GE HealthCare reported revenues of $5.32 billion, up 2.2% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EPS estimates but organic revenue in line with analysts’ estimates.
GE HealthCare President and CEO Peter Arduini said, “We were pleased with the strong momentum in orders, backlog and book-to-bill that we saw in the fourth quarter. We also continued to deliver revenue growth driven by demand in our Advanced Visualization Solutions and Pharmaceutical Diagnostics businesses, with overall strength in the U.S., and robust margin expansion and earnings growth. Customer interest in new, differentiated products contributed to orders growth and recurring revenue in the year. We remain committed to our precision care strategy for growth, supported by innovation, productivity initiatives, and commercial execution.”
The stock is down 5.1% since reporting and currently trades at $81.47.
Is now the time to buy GE HealthCare? Access our full analysis of the earnings results here, it’s free.
Lantheus (NASDAQ: LNTH)
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Lantheus reported revenues of $391.1 million, up 10.5% year on year, outperforming analysts’ expectations by 3.8%. The business performed better than its peers, but it was unfortunately a mixed quarter with a decent beat of analysts’ full-year EPS guidance estimates.
Lantheus pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 19% since reporting. It currently trades at $95.30.
Is now the time to buy Lantheus? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Hologic (NASDAQ: HOLX)
As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ: HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.
Hologic reported revenues of $1.02 billion, flat year on year, in line with analysts’ expectations. It was a decent quarter as it posted revenue guidance for next quarter meeting analysts’ expectations.
Hologic delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 15.7% since the results and currently trades at $61.33.
Read our full analysis of Hologic’s results here.
QuidelOrtho (NASDAQ: QDEL)
Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ: QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.
QuidelOrtho reported revenues of $707.8 million, down 4.7% year on year. This number surpassed analysts’ expectations by 1.4%. Taking a step back, it was a slower quarter as it recorded a significant miss of analysts’ full-year EPS guidance estimates.
QuidelOrtho had the slowest revenue growth among its peers. The stock is down 15.8% since reporting and currently trades at $33.65.
Read our full, actionable report on QuidelOrtho here, it’s free.
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