GE beats The Street in Q1, stock falls as supply chain issues impact guidance

GE (NYSE:GE) shares took a hit today despite first-quarter results that came in ahead of the consensus forecast.

GE shares were down 9% at $81.79 per share in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down 1.2%.

The Boston-based company posted losses of $$809 million, or 74¢ per share, on sales of just over $17 billion for the three months ended March 31, 2022, for a bottom-line slide deep into the red from profits of $20 million last year on sales that were virtually identical from the year prior.

Adjusted to exclude one-time items, earnings per share were 24¢, 5¢ ahead of Wall Street, where analysts were looking for sales of $16.9 billion.

GE’s healthcare business — which is set to become a standalone company next year — grew by 1% year-over-year, bringing in nearly $4.4 billion in revenues for the quarter. Healthcare systems (9% ord…

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Key Tech names next CEO as co-founder plans to retire

Key Tech co-founder and CEO Jenny Regan [Photo courtesy of Key Tech]

Key Tech co-founder Jenny Regan plans to retire as CEO of the product development firm at the end of August, making way for VP of Strategy Alex Flamm to take her place.

Regan has been CEO since she and her co-founders launched the Baltimore firm in 1998. The company said it now has 75 interdisciplinary medical product designers and hundreds of clients in the medical technology industry, including Becton Dickinson, GE, Thermo Fisher, HemoSonics, GenMark and Abiomed.

Regan, who led Key Tech’s transition to a fully employee-owned company in 2019, will join the Key Tech Advisory Board.

“I’m incredibly proud of what we’ve built and how much good we’ve been able to do,” Regan said in an announcement posted to the company’s website last week. “I’m confident in our new leadership and will always be inspired by the talen…

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GE cuts CEO compensation amid shareholder concern

GE CEO Larry Culp [Photo courtesy of GE]GE (NYSE:GE) announced that CEO Larry Culp has agreed to reduce his annual equity incentive grant for 2022.

Culp’s employment agreement had him receiving a $15 million equity incentive grant this year; he’ll instead receive $5 million, according to a company proxy statement filed yesterday.

The GE board compensation committee said: “Shareholders have been overwhelmingly supportive of Larry and the action in 2020 to extend the term of his employment. But there was shareholder concern around the timing, size and structure of the 2020 retention grant made as part of the extension.”

According to the proxy, Culp’s total compensation nearly tripled to $73.2 million in 2020 from a previous $24.6 million in 2019. It settled down to $22.7 million in 2021.

GE’s revenue meanwhile declined nearly 16% to $75.8 billion in 2020, with much of the sales decline coming from the conglomerate…

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Three GE Healthcare leaders outline their vision for AI and the cloud in medtech

GE Healthcare Life Care Solutions Chief Technology Officer Roshy Francis [Photo courtesy of GE Healthcare]Set to spin off from parent company GE (NYSE:GE) next year, GE Healthcare leverages artificial intelligence (AI) to help providers improve efficiency, patient outcomes and access to care.

The medtech giant’s offerings include AI-based imaging applications and its Edison Health Services platform.

As part of the Medical Design & Outsourcing cloud conversation series with medtech innovators and leaders, three leaders from GE Healthcare — Life Care Solutions Chief Technology Officer Roshy Francis, SVP and Imaging Solutions GM Rekha Ranganathan and VP and Edison AI and Platform GM Vignesh Shetty — offered their vision for the cloud-enabled future of healthcare.

Get the full story at Medical Design & Outsourcing.

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Three GE Healthcare leaders outline their vision for AI and the cloud in medtech

GE Healthcare Life Care Solutions Chief Technology Officer Roshy Francis [Photo courtesy of GE Healthcare]

Set to spin off from parent company GE (NYSE:GE) next year, GE Healthcare leverages artificial intelligence (AI) to help providers improve efficiency, patient outcomes and access to care with its AI-based imaging applications and Edison Health Services platform.

As part of the Medical Design & Outsourcing cloud conversation series with medtech innovators and leaders, three leaders from GE Healthcare — Life Care Solutions Chief Technology Officer Roshy Francis, SVP and Imaging Solutions GM Rekha Ranganathan and VP and Edison AI and Platform GM Vignesh Shetty — offered their vision for the cloud-enabled future of healthcare.

This conversation has been edited for space and clarity.

MDO: What are some surprising and inspirational examples of what cloud computing enables with regard to medical…

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GE misses Q4 projections as supply chain issues cause healthcare revenues to dip

GE (NYSE:GE) shares took a dip today on fourth-quarter results that came up shy of the consensus forecast amid supply chain problems.

The Boston-based company posted losses of $3.9 billion, or $3.55 per share, on sales of $20.3 billion for the three months ended Dec. 31, 2021, for a massive bottom-line slide from profits of $2.4 billion this time last year on a sales decline of 3.5%.

Adjusted to exclude one-time items, earnings per share were 82¢, 5¢ behind Wall Street, where analysts were looking for sales of $21.5 billion.

GE’s healthcare segment also experienced a slight revenue decline, registering sales of more than $4.6 billion for a dip of 4.1%. The company attributed the sales drop to ongoing industry-wide supply shortages and inflation, but said its healthcare arm is well-positioned for continued profitable growth as GE prepares to stand up the business as an independent company in 2023.

“2021 was an important year for the GE team, …

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BREAKING: GE Healthcare to become stand-alone company in 2023

GE (NYSE:GE) announced plans today to split apart into three separate companies in coming years, including a stand-alone GE Healthcare.

GE Healthcare brought in $17 billion in sales in 2020 and remains one of the 10 largest medtech businesses in the world, even after GE divested its Biopharma business to Danaher in early 2020.

 

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GE warns of supply chain strain well into 2022

GE CEO Larry Culp [Photo courtesy of GE]Medical device makers and suppliers seeking relief from the global semiconductor shortage will have to hold on a while longer.

GE (NYSE:GE) is warning investors that supply and labor shortages are squeezing its Healthcare business this quarter, and that the pressure won’t likely let up in 2021.

GE’s Healthcare business “largely is a supply chain story right now,” GE Chair and CEO Larry Culp said this week, specifically citing semiconductors, resin and logistics as supply chain barriers to meeting “strong, if not robust” demand.

Get the full story at our sister site, Medical Design & Outsourcing.

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GE warns of supply chain strain well into 2022

GE CEO Larry Culp [Photo courtesy of GE]

Medical device makers and suppliers seeking relief from the global semiconductor shortage will have to hold on a while longer.

GE (NYSE:GE) is warning investors that supply and labor shortages are squeezing its Healthcare business this quarter, and that the pressure won’t likely let up in 2021.

GE’s Healthcare business “largely is a supply chain story right now,” GE Chair and CEO Larry Culp said this week, specifically citing semiconductors, resin and logistics as supply chain barriers to meeting “strong, if not robust” demand.

“It has been a bit of a whack-a-mole game in making sure we’ve got what we need to fulfill demand at the levels we’d like to. … We’re really engaging that challenge on a daily basis,” he said Tuesday at the Morgan Stanley Laguna Conference.

The Boston-based conglomerate recently warned those supply constraints “may impac…

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GE beats The Street as healthcare segment thrives in Q2

GE (NYSE:GE) shares ticked up today on second-quarter results that beat the consensus forecast.

The Boston-based company’s healthcare segment posted profits of $801 million, registering a bottom-line gain of 58.3% year-over-year on sales of $4.5 million — a 14% increase on revenues from the previous year.

GE’s overall sales totaled $18.3 billion for the three months ended June 30, 2021, marking sales growth of 8.8%. Adjusted to exclude one-time items, earnings per share were 5¢, 1¢ ahead of Wall Street, where analysts were looking for sales of $18.1 billion.

“The GE team delivered strong overall performance in the second quarter,” GE chairman & CEO H. Lawrence Culp Jr. said in a news release. “Orders and revenue returned to growth, our operating margins expanded across all segments, and we generated positive Industrial free cash flow. Momentum is building across our businesses, driven by healthcare and services overall ……

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GE ticks up on mixed-bag Q4

General Electric (NYSE:GE) shares ticked up today on fourth-quarter results that were mixed compared the consensus forecast.

The Boston-based company posted profits of $2.6 billion, or 27¢ per share, on sales of $21.9 billion for the three months ended Dec. 31, 2020, more than tripling its bottom line despite a sales decline of -16.4%.

Adjusted to exclude one-time items, earnings per share were 8¢, 1¢ behind Wall Street, where analysts were looking for sales of $21.8 billion.

GE Healthcare brought in nearly $5 million in revenues, marking a -15% decline attributed largely to the sale of its biopharma arm to Danaher in the spring of 2020. The segment’s profits of $949 million were down -17% from $1.1 billion last year.

The company said in a news release that its revenues were up 6% organically thanks to growth in its life care solutions business with the delivery of Carescape R860 ventilators during the COVID-19 pandemic, as well as imaging a…

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