GE Healthcare Technologies (GEHC) recorded first quarter results on Wednesday, which were better than analysts had expected, but the former General Electric division lowered its full-year profit outlook due to tariffs.
The medical device manufacturer reported adjusted earnings per share of $1.01 against revenues that increased 3% year-on-year to $4.78 billion. Analysts voted by the visible Alpha had forecast $0.92 and $4.666 billion, respectively.
The impact of tariffs of $0.85 per share has lowered adjusted EPS forecasts
However, GE Healthcare has lowered its full-year adjusted EPS forecast due to the released tariffs. The company said it expects an adjusted EPS of $3.90 to $4.10 from the previous $4.61 to $4.75 range. Organic revenue growth is still expected from 2% to 3%.
“We are actively promoting mitigation measures regarding the current global trade environment,” said CEO Peter Alduini. “We continue to see strong customer demand in many of the markets we serve and are well located to promote long-term value as we invest in future innovation.”
Also on Wednesday, the company said the board approved a plan to buy back shares up to $1 billion.
GE Healthcare shares rose 4% shortly after the report was released on Wednesday. Entering that day, they had lost about 13% of their value from the beginning of the year.
Last week, former companies Ge Vernova (GEV) and GE Aerospace (GE) exceeded their first quarter estimates to confirm their full-year outlook.
