GE HealthCare stock rises after reporting first results after GE spinoff, with revenue rising 8% but profit slipping

Shares of GE HealthCare
GEHC,

rose 1.3% in premarket trading Monday, reversing an earlier loss, after the medical technology and pharmaceutical diagnostics company reported its first results as a public company, with fourth-quarter profit falling from a year ago while revenue rose. The company, which completed its spinoff from General Electric Co.
GE,
+2.58%
on Jan. 3, said net income slipped 1.8% to $554 million, as earning per share from continuing operations fell to $1.21 from $1.24. Excluding nonrecurring items, adjusted EPS fell to $1.31 from $1.36, while standalone adjusted EPS, which includes standalone costs, was $1.21. Revenue grew 7.6% to $4.94 billion. Cost of products and services sold rose more than revenue, up 10.2% to $3.01 billion, as gross margin contracted to 39.1% from 40.6%. There were no consensus estimated for quarterly results from FactSet. The company expects 2023 adjusted EPS of $3.60 to $3.75, up from 2022 standalone adjusted EPS of $3.38. “We’re seeing customers continue to invest along with macroeconomic tailwinds, such as increasing healthcare digitization, expanding access to care, and an aging population globally,” said GE HealthCare Chief Executive Peter Arduni. While the stock edged lower after results, it outperformed the broader stock market, as futures
ES00,
-0.88%
for the S&P 500
SPX,
+0.25%
dropped 1.0%.