GE (NYSE: GE) this week posted third-quarter results that beat the revenue consensus on Wall Street but missed on earnings.
GE HealthCare spinoff plans remain on track for an early January 2023 completion.
The Boston-based company reported a loss of -21¢ per share for the three months ended Sept. 30, 2022, versus a profit of $1.08 during Q3 2021. Sales were up 2.8% year-over-year to nearly $19.1 billion.
Adjusted to exclude one-time items, earnings per share were 35¢, 11¢ behind The Street, where analysts were looking for sales of $18.6 billion.
GE HealthCare reported $4.6 billion in sales, a 6.3% gain from Q3 2021. Net profits came in at $712 million, representing a 1.1% gain year-over-year.
“Our planned spin-offs remain on track with GE HealthCare ready to go in the first week of January. With leading positions in growing, critical sectors, we are excited about our plans to launch three independent, investment-grade companies set up to create long-term shareholder value,” CEO Lawrence Culp said in a news release.
Shares in GE were down more than 2% to $71.65 apiece in morning trading. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up more than 2%.
More on GE HealthCare and the Q3 earnings report
Sales at GE HealthCare were primarily driven by its Imaging and Ultrasound businesses. The company continues to expect mid-single digit revenue growth while operating profit is anticipated to be at least $2.6 billion but may be impacted by inflation, foreign exchange and investments.
GE HealthCare achieved critical milestones in Q3 for its planned spinoff in January 2023, including naming a board of directors and filing its Form 10 registration statement. Financially, the company continued to deliver precision health innovation throughout the quarter. It expanded its partnership with AliveCor and announced a collaboration with AMC Health to enable remote patient monitoring.
GE is maintaining its prior organic revenue outlook for 2022, predicting that it will trend toward the low end of the high-single-digit growth range. The company projects adjusted earnings per share in the range of $2.40 to $2.80. Wall Street analysts, on average, expect adjusted EPS of $2.63 this year.