GE HealthCare Technologies Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a good week for GE HealthCare Technologies Inc. (NASDAQ:GEHC) shareholders, because the company has just released its latest yearly results, and the shares gained 5.2% to US$92.21. GE HealthCare Technologies reported US$20b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.34 beat expectations, being 5.3% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for GE HealthCare Technologies

Taking into account the latest results, the consensus forecast from GE HealthCare Technologies' 19 analysts is for revenues of US$20.1b in 2025. This reflects a reasonable 2.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.1% to US$4.49. Before this earnings report, the analysts had been forecasting revenues of US$20.4b and earnings per share (EPS) of US$4.47 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$99.46. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on GE HealthCare Technologies, with the most bullish analyst valuing it at US$115 and the most bearish at US$74.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that GE HealthCare Technologies' revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2025 being well below the historical 3.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than GE HealthCare Technologies.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for GE HealthCare Technologies going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - GE HealthCare Technologies has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.