GEHC - Earnings call transcript Q2 2024 | GE HealthCare Technologies Inc.

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Operator

Good day, everyone, and thank you for standing by. Welcome to GE HealthCare Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I will hand the call over to the Chief Investor Relations Officer, Carolynne Borders.

You may begin.

Carolynne Borders

operator. Thanks, welcome Second and Call. XXXX GE to morning, Quarter HealthCare's Earnings Good joined CEO, Jay and and our Saccaro. Arduini; I'm President President Peter by and Vice CFO,

Our slides be found and today's press both between conference in and our in will the website. and results. presentation GAAP can financial on Reconciliations GAAP measures non-GAAP release call remarks available non-GAAP include

about see During this how statements we things are These call, we'll our make based performance. forward-looking today. statements on

to results described Peter. uncertainties. And risks our due filings, differ As the to and actual that, over may hand in I'll with materially SEC call

Peter Arduini

Carolynne, joining delivered the Thanks, and X% segments today. thanks revenue organic those to orders we us quarter, with all all contributing. second and growth, In X%

the margins We and despite imaging disease use market. cycles headwinds across also of strength increased We ultrasound for in expanded the in resilience given diagnostics U.S. and stage China replacement the market. in saw particular

each We the we was gaining and Excluding market and orders in in invest will China, growth services in our growth X%, products that global accelerate believe we're was continuing to of growth X%. future. segments, revenue share are and

impacting half we it new we compare. in China announced performance, we first would experience of the stimulus the the a previously and timing face As is the expected orders time, earlier prolonged negative positive sales half. Today, sales. relates sales At of in second the that the the challenging growth this of rollout communicated to region as growth year timing

in we anticipate growth be We the negative will China in and continued half, in expect year-over-year a sales year. the decline China second for

revenue revenue guidance that growth total maintaining our lowering note full year. reduction, guidance. It's this for the we to important EPS are we're organic year our despite result, a As company

expect in see with disappointed half in Although we market a is we're second temporary the China orders challenge, year. and later sales growth, recovery to reduction this the

market view as long-term attractive to continue this We an opportunity.

team quarter, has performance half the those process identified first resulting ultimately We're higher embraced run our the and along and our were the of While improvements completed leveraging encouraged at and Kaizen. We in better lean with year, product and eliminating executing throughout great our seeing deliver orders that customers the We're China CEO week. services. weighed XXXX in our by improvements Kaizen and through XXXX. products margin making revenues on continuous of to progress improvement and recently value P&L increased and satisfaction, sessions end coming customer rates benefits approximately in patients win and our global waste, XXX or now

held and and XX where events and colleagues our across leadership Kaizen. week, improvements, drive end at a cost later During others drive we is Teams the execute were improvements, my impact of immediate the key team changes to sites capital a will week, good of and which aspect growth, working have I process the focused impact the which in year. of some on joined while

tool margin XX% detail our flow. raising guidance, free coming costs reduce adjusted Waukesha, week engineering, a demand with the One optimize our year. build discuss lead meet greater that Jay overall cost the out consisting by outlook team for level sourcing our a in CT scanners. a plan and flow will improvement manufacturing shrinking costs we're by tool In reduce PET/CT platform adjusted quality our our improving of Omni high and my of and critical customer running Kaizens, XX%, first progress these reaffirming create for an while as availability customer cash and savings demand on our time year, system create future PET/CT and plant help will will call. It XX%, EPS this Legend we manufacture in load production, are that Leveraging productivity and capacity, responsiveness new on focused for all. outlook team to EBIT visual the there. for to we was us well CT as a later cost products management system orders. The and shows [indiscernible] the customer We in that called our energizing

milestones. execution commercial to Moving

included the strategic As expedite This collaboration and developer important X AI see I and for where clinical streamline Imaging, and the multimodality $XXX strong market care be division orders particularly a growth. In help Services growth than strong AI our the pipeline contracts. with software million secured products, we sales acquire build for announcements of mentioned, more had Intelligent in July, operations continues tools and to operational to ultrasound a of a tools Web a of models to AI Amazon we foundation generative saw delivery. and women's and AI healthy we We to to efficiencies. Ultrasound. and hospital to tools continue agreement health proprietary develop Ultrasound, robust, quarter IGT to service in U.S. region equipment, and U.S. in made The

Now will performance. I'll to it you quarter of second details pass our who through take the Jay, Jay?

James Saccaro

Pete. Thanks,

Let's start performance financial Slide on with our X.

of up of X% results quarter X% in constraints. second the when growth XXXX, year-over-year. we Recall, were to second revenues $X.X compared of quarter experienced the chain billion supply quarter's organically easing For XXXX this

in year-over-year, Meaning orders filing basis of was company approximately X% China, sales our by quarter strength points. the the can increasing total The growth U.S. was morning, global this driven you Rest growth the impacted by excluding and growth, continued World. sales headwinds in solid, As China see in X%. XXX approximately from market Organic

continue sales, basis versus China book-to-bill last of on year. XXX company X.XXx a X%. Orders to outpace impact of total a strong point X.XXx order would growth [ orders, leading ] dollars been Excluding have to

healthy EBIT We of higher XX gross quarter equipment-only reminder, services driven a price. backlog continued second total improvement points book-to-bill growth. in productivity exited company the and margin As a with basis strong than margin book-to-bill. up billion, XX.X%, $XX including is was by with year-over-year, Adjusted

sales was strong the demand. impacted PCS lower segments. timing line interest of Ultrasound China and growth our Free negative flow at expense. second Second saw quarter EBIT aligned payments. On revenue in was Slide and and up to adjusted increased certain for a closer take our X% EPS performance adjusted year-over-year, both due expectations of Imaging negatively very X, was procedural let's $X, cash organically growth look segment reflecting on We revenue headwinds market Service global basis a X%. a XX% the to reported quarter. with

to make continue expansion. We margin progress very good on

points, through this has lean The margin Let's basis basis capabilities X. In made adjusted gross on adjusted to team actions. EBIT significant XX margin progress, XXX walk margin-accretive points. focus on the quarter, Slide expanded expanded and utilizing

court led of doses Kaizen to cost million and over facility costs actions, points margins. In ongoing Imaging half through XXX improvement a XX in in expanded, and of with PDx annual margin of our was our margin basis the increase how expand This product us grew on savings. in increased X.X hosted to lean As focused reduction. and IT, particularly EBIT segment, In volume a gross basis in May, by and XXXX. Gross led are basis resulting points capacity great optimization actions margin margin of raw cost first that our introductions. time of adjusted these result stabilization another -- enables example new volume cycle gross which adjusted we is permanent strong we're PDx and material XXX

annual XX a more has managed than we of resulted, example, applications service more signed vendors X and than we consolidated supporting agreement million $XX savings. our have as that For to vendor

we're exit to developing we As GE specific TSAs, needs. solutions HealthCare's

example, moving data consolidating as as number more we the use. centers and to internal of For cloud well reducing devices the

$XX in We additional expect XXXX. savings this of to million drive an

we mid-single-digit are invested variable million we quarter. side, drove the XX% margins. segments recently while cost profit R&D, expanding than On AI more our margin, gross higher $XXX the in across second all with driving the in products quarter, growing productivity introduced year-over-year, In

to performance. Now segment turn I'll

were this Imaging prior Let's a also by was up was comparison basis flat had year-over-year. start we was market on up margin Slide Segment with revenue when This growth. year X%. Growth in points headwinds. impacted EBIT organic the XX where segment difficult China to X, against sales

progress points continue first R&D. Margin to XXXX versus gross on by make enhancing of the while sequentially in quarter productivity price volume XXX margins We through improved basis also investing to leverage. and due

introductions product demand. New in contributing are product strength particular U.S. to

primarily to decreased basis standardization and by inflation. market productivity XXX China achieved X% This Slide China product Turning in was by was partially to through sales on and revenue year-over-year, driven lower Ultrasound introductions. Segment margin X. EBIT down year-over-year, cost points headwinds. Organic new due offset

to continue solid see for recently launched products. We customer our demand, especially

year. to healthy Patient Solutions in well while X% product Moving decreased from new to productivity product backlog, Care XX margin introductions contributions expected with was positioned a due are offset X. growth. EBIT year-over-year, revenue Segment X% drive to Organic up basis and inflation year-over-year following prior future points the mix, actions we on growth Slide

and XXX developments XX. market. margin we're continued supply doses to mind in particular, imaging organic another Slide driven XX% pleased on segment. driven remains Segment product new growth We EBIT productivity introductions. expansion year-over-year of Security basis volume, points Diagnostics by margin volume, supply to Moving quarter, with improved XX.X% in generating the We're Pharmaceutical and sales pricing. pricing and U.S. of quarter. positive delivered molecular investments We by global strong and our radiopharmaceuticals we're contrast for Vizamyl this threefold. top year-over-year had the the in sales the by enhance These customers, of make second of continued to continuing acceleration increased encouraged saw agents meet to demand. In in increased of

second the due free Slide and Turning flow payments. quarter, million $XXX the was on performance. interest cash timing In to flow XX negative normal of compensation to cash

in continue relative year. compensation result is well year that timing expected higher in given substantially higher as the for generation volumes of seasonality, expect as the strong earlier certain the year. to first and occur flow the cash cash supplier of be half as second We a Free the payments to of to full the

Our to capital business strategy. reinvesting disciplined advance a provide the strategy to strong flexibility growth continues and us cash profile in while our allocation executing flow the

growth and outlook EBIT to turn year a to the with $X.XX with we expected market of flow for adjusted contribution to taking be let's are full approximately Despite XX% along guidance prudent -- continued momentum Slide our billion. range raising our in of X% lowering growth margin the from Now expect expectation reaffirming $X.XX associated to guidance XXXX optimization XX. for in on the China. now to X% to revenue points initiatives, expansion, to $X.X XX our temporary which be approach headwinds this NPIs. We're cash our and due with X% free We're EPS organic in year-over-year, we're our to basis seeing reduction, of range of adjusted XX productivity and we're on

organic revenue adjusted EBIT and growth quarter margin would similar the the relatively be margin X% We expect quarter be quarter. adjusted second the revenue of approximately in to third highest growth to of to We year. expect EBIT expansion organic year-over-year and year-over-year fourth

revenue the to expect from we that note X% than would foreign less I in year, exchange headwind XXXX. the about think you As be

to like the call turn over Pete. back I'd Now to

Peter Arduini

reimbursement Thanks, proposal cancer, agents supply We'll and our today, create Jay. for to I'd diagnostic value customers. benefit slide you Building Imaging. We're use. a were expected imaging some to deeper you the diseases. more limited us scanners, ability give dive see and the on U.S. my patients. To perspective, these call, on radiopharmaceuticals treatment precise facing a like in prevented comments accelerate market and has pipeline lean culture neurological innovation and and who planning from strong by and PDx is growth to to some at But molecular the patients as the treated encouraged the PET reimbursement, for in cardiovascular with of potential of our in for to our and This the differentiated of to broad-scale Day. solutions recent ultimately bring on into SPECT Investor with unlock are allowed CMS earlier last decade, what focus step patients has enabling

market rule agents, into radiopharmaceuticals, been change dollars. future such these we space. This new including expect of an see DaTscan, average have of reimbursement The some give as hospitals January paying will value begin sale for a price which which comes of molecules Cerianna when a cardiovascular Vizamyl in to X, on the will effect Assuming better, XXXX, needed and with of we challenge to CMS the thousands promise for this goes continue existing and at [indiscernible], momentum their disease. time cover has long-standing the costs

these benefit reimbursement expect each rule. We new from of products will the

PET approval grow in our second anticipate doses agent. even Vizamyl recent to the amyloid further mentioned, the Jay FDA U.S. we uptick in the As quarter with of donanemab, of diagnostic continued

This to years. us growth, the is about sales sales over potential contributor optimism still a its next small gives few but

can detector platform a On needs the providing adopt patients. upgradability smaller so the PET upgradable the evolving of imaging, expanded introducing and equipment value side their we customers our Omni meet scanner of Legend by to

of this low-cost building a or prevent tracers will issues MINItrace in-house siting regional and hospitals We cyclotron. with hospitals them larger And traditional production access also size to that help a infrastructure cyclotron to distribution limited radioisotopes. Magni, with needed commercial for accommodate introduced from the small,

Slide XX. better use modalities clinicians to aligning business settings. image-guided therapies for to and in Turning how We're our position ultrasound high-growth these ourselves X

an conjunction in workflow, example, better our For you they multiple integrated than the how products more electrophysiology for combined see inside when and create X businesses These unlock separately. do work patients. can experience and customers in suite a value

to more Day. Investor at sharing forward this looking about are We

also made We appointments aligned leadership to strategic these changes.

significant have operations, industry and of lead with and Ultrasound imaging Image-Guided and X, previous our largest are is to they're a Head July is positioned expertise IGT. Rackliffe, and deep Head and Phil Roland X Therapies well Rott, our off and ultrasound global products of knowledge, start. Phil of As businesses mindset great leading leading our and Roland to

Before on proposed I'd for turning team for thank government the outpatient our who like years for the hospital benefit want their to I CMS to our rule to of XX, Q&A thank to Slide advocated and In customers. policy particular, for team our patients. affairs multiple delivering commitment

prudent that orders ahead, in look encouraged particularly guidance, we I'm delivered backlog X% we equipment China. solid or at U.S. with $XX reasons. our We outlook. excluding on at the And overall a As have approach can I strong we optimistic spend, We're a by few quarter for growth the confident billion. in feel revenue our capital deliver to One, X% a

initiatives, funnel productivity innovation. to of to much is raise there's due to opportunities and and were excited more pipeline Our able of strong, the these still margin here. We're do EBIT progress adjusted we guidance our on our about

the patient Day. And to well We to like care More up sole lastly, come. for ] given years this factors, Investor these our at sets us enables deliver up confident have in goals. With in challenges, November we'd medium-term improved open questions. about [ that can we this customer we're and growth our on that, for

Carolynne Borders

[Operator you, can the Instructions] you line? Peter. please Thank Operator, open

Operator

first [Operator Joanne is with Instructions] from Our Wuensch Citi. question

Joanne Wuensch

want I how do my our into and new as how of arriving on models trying up we you China understand pace to think think and about the year? spend program. think you When opening to put together, orders XXXX question I next it stimulus the rolling from about anticipate you this

Peter Arduini

Joanne, Thanks it's Peter. the question. for

my we prepared those rollout I are in the remarks, program mentioned I the estimated. and people as So estimated, than stimulus details plans of taking than many longer think,

some in when was out came pretty quickly. previous Just the a there just rollout from it government, background, XXXX, central

together. was because on. In roll working of under 'XX, taking predicate it and kind rollout of that X announcement the to combination central think assumptions a from mainly the provinces I longer, government was months XX out, it's we base of is the each the around

late driving 'XX growth. well going so And longer believe taking And it it that's before that's into roll be that, we to to out. begins

expect taken this to fundamentally and positive it in a on view be market. numbers. China catalyst sales 'XX, going of our ultimately positive limited tenders, believe for orders is to a between have impact we've time that this And we late We the that but out sales we on orders take the just starting impact place. could as a So

of the viewed we of for 'XX again, it advantage may in to our an a it year, we'll come benefit taking having want when would comments. you so as out and forward, numbers add And to the we it. Jay, obviously, does of But impact expect prudent. see few take stimulus

James Saccaro

Yes, sure.

adjustment. decline was sales provided in actually second we to guidance the roughly estimating But Just million. detail a we this It worse quarter. more million that. quarter, we last saw in $XX than were a When something little on $XXX closer

of the And the balance going of sales. And look the about so year, there's be look real the rest the impact no And see from we for the challenging can trend fact, of year. as kind as in market expecting to is China we're assumed at of down we also, year, a our in half disclosures, you we've XX%. stimulus first to really

what And to of so through, we've think the that million out. guidance -- the taken thought. starts impact when we X% come at a previously it to or starts the stimulus package, 'XX, development. timing When be to trying China to China relates stimulus the a as of positive to relative will midpoint $XXX about the time we're not in it adjustment of X% range, it's this it the did we But range estimate roughly you

coming do advantage that starts positioned take On to stimulus the side, Pete believe we of as are through we well once positive that, said.

think a last this much attractive that long-term would our XX% market, range challenging. The year's is good is -- overall, XX% business. roughly or around we historically, So this is, say It China but XX% I about the current been year think thing our as we than be in has of year to market modeling. clearly, only the will less

Operator

from comes Wells Our Larry Biegelsen of line next the Fargo. question with

Larry Biegelsen

you start wanted did is, revenue mentioned, about you So reduction? revenues have with but margins, guidance. maintain Jay, EPS to question and my margins by million, I X a the and given bit maintained you I to as are little EPS the able lowered maintain follow-up. how actually increased $XXX 'XX margins

James Saccaro

Great. Thanks, Larry.

the growth. I in XXX as half the a basis And gross heard We good really line our we're very at contribution points So exceeded points the in the look, in the year. had talked year initiatives, of a mean first of of year-over-year, G&A really IT on. We half impact to second would offset also little bit thing in one really roughly in of in the of contributed fact, some margin you lean quarter. that that notably, that, formula margin some has of our we is that is delivered the then revenue that work than And of the highlights saw about more cost we say culture, on variable first XX year. And a and team I I X is we've delivered really bottom But initiatives. price prepared the about historically where initiatives had basis And productivity undertaking. then hope our that on we in of initiatives, expectations those on we proud And throughout think of we look be. low emphasis remarks, from the positive against lot that exactly quarter, proud you cost second the the Kaizen, that. inflation. talked our point

or half what what the So in same. In is we the expansion, at through to And the more the of the year and fourth uptick, in QX. we'll continued the quarter, third margin of tick I similar quarter, then to up happens expansion say, margin in back it's is more range, midpoint going in see price. should the some there come of saw

Some we've year, last fourth don't the I that onetime inflation and productivity quarter in also had of initiatives of these then had we repeat. offsetting expect that points we R&D of cost would items initiatives note XX these to success. And basis around

I some at of of these beginning adjust some and of these one margin were year, as really, the did risk the the improvement. cost that's is we productivity think initiatives we containment thing cautious initiatives. So about the contours year of would we and say The

against it's million, So these initiatives, profit incremental delivering our how offset execution expectations. you real versus do the question, $XXX

feel by overall, good it's the last very kaizen a trajectory. we that It's about week margin think like effort. highlighted initiative had I week. I But company-wide things

Larry Biegelsen

some Jay, still Do in And right Pete, you growth China Pete about thoughts expect mid-single-digit in Any confidence now XXXX? year? are from And goals. I comments the catch-up medium-term the helpful. next confident you on heard That's or outlook? your high-level

Peter Arduini

thanks for Larry, the question.

value that for profit my goals that know out, I mentioned profit, China that laid side, going about probably not company. that in really, XXXX. to revenue we that, out, expected. the previously a So on core going to have obviously, the what Obviously, goals, time more It's positive. But than is we will mind. as in how in would had in closing I reasons it's and guidance And to We'll be markets growth less feel the but the we've midterm see be on laid it's Jay say we more changes in clearly out. don't -- medium-term to both confident comments and shakes our about our my our we've it's give create that made

integrated highlight I beyond. And we sell finish large the capabilities. just to able comment be couple to make of Our capability right will relative that bring R&D increased year over with out it few feel first get able hand kind as products actually last investment. and years. behind value, out in again, We commercial independent about more just to building we've on Remember, be percentage bring Day that Investor products good R&D be our not the deals a company. price, an this new into want of scenes as to differentiated our of to the just execution points our we're this we've 'XX the holding another November, stepped now only up but to move really our been

areas diagnostic in all out. in of we've our PET/CT, been MR, so the ultrasound, CT pharmaceutical business area, in in and And molecules coming investing in monitoring, new

want able that So story. to tell we be to

about plans being good years to kind we're that here company. in to feel I -- the looking position year on positioned next in. and a to couple the And for of we're, grow so of the And delivering forward our over well again, the continue this

Operator

Our next with Anthony Group. Mizuho from comes Petrone line of question the

Anthony Petrone

Alzheimer's on question then here. Maybe second bookings will is a orders going One be to and and disease. the on be X-part

X% to state order do China just lot the the U.S. a despite headwinds think comes in with book-to-bill of has X.XXx number, I the in market. So and plus of that

innings into And it Ultrasound visibility a recently. the Alzheimer's a of can for market as the Clearly, disease tests XXXX? And then extend on out in just patients. segments. maybe Imaging So and Alzheimer's imaging feasibly a How here, results U.S. to had blood-based in early funnel, little there? is at preferred couple to Vizamyl that solution the is there's bit this least relates onboard much specifically disease,

how So we coming in? potentially out the disease new side Alzheimer's consider from PET/CT does play when test

James Saccaro

for with question. X% over as and the highest and to growth orders you start And quarter the X% very orders strong we and the I'll a Alzheimer's thought the additional out, growth we've of China had I point the and then we good since Look, a that Orders strong actually Pete it decline the Maybe China, orders segments, book-to-bill result. for the of growth. X.XXx, on sales it growth spun book-to-bill, in in quarter a I turn in some the sales face saw outpaced was think, really was excluding the were the color in U.S., each orders frankly, U.S. of off. In

work we at then So with customers we in there. telling investments know, market there, in as up to as they looking the numbers be half. more plan And nice the respect PDx surveys -- in continues really, really to to our growth. And of do And market procedure out you spend The in are us on survey. do line we capital many second particular U.S. with a seeing those all surveys, very robust. of the solid also We're quarterly putting

had market the that in a also backdrop good very position really And in a that's we growth that U.S. about just the think equipment we've Ultrasound. the I share deliver products -- seeing we we to of look we've shared. good on guidance number new as in the launched have. We feel We're So

receptivity in And so seeing new real to of some place. products we're we a have the that

then good about feel U.S. So $XXX would million point we sequentially, feel backlog orders billion. is up at other market. good $XX backdrop. note the And range We quite I that the is overall, about the in

to the to we're to that? like level grow that what business. Pete, would So continue the backlog at the you add as we keeping we'd

Peter Arduini

it value team and the quarter. Jay, a in the is I taking I'd new put growth just a enterprise to that No, just And had processes proposition about -- in share we've realistically products, that and think IDN. our we areas a but talked area, the older an that sales base in few really had the Yes. team years. we even U.S. in product talent we site it a We previous covered new phenomenal and IGT winning vascular train States. some is place, United haven't we lab wins. And again, But the big I you larger about quite about upgrades in in where the it's it, bring but like -- business itself, installed we're think disciplines the

actually pharma pressure are because about side, So through good we patients more flowable continue have more that we pretty the our CFOs think that's businesses, we such you're this that putting way the big a the more cycle puts to ultimately, equipment are particularly see And you the that catheters replacement tech the survey customers, works such Signals out growth going from in a in med and lot system. to of on. investments. and positive buy when is

U.S. So radiopharmaceutical delay remains seen. but to I in practice, of lot the How be think many the market. coming on side, we're see think, through, well question going different confident we we how Anthony, see accepted integrated quite diagnostics are be I about of to into see your they'll different a look, pop and that these up in phases.

how amyloid to the room about most the I this of a is, the all on multiple therapies being though, actually the things, scans Again, to take grow there changes receive diagnostic, again, were pharmaceutical radiopharmaceutical well continue only able products of And thousands Alzheimer's few provider price, the where customer, to dollars, still point cancer, see being see that's think reimbursement if products. have back this a bring. hallmark pre well. I a to took place. beta excited to molecules I specifically, of changes your PET, road, to scans, you're optimistic a of which depending off, disease hundred that broader dollars case, could to larger the as of will And do done that a doing makes of it baseline CMS tests for were we disease, that lots post in larger just you some Alzheimer's going point the maybe it. super again, of be your lot relates to of taken it you that would on have that a actual off that of like cardiovascular receive -- elimination to all down care and And actually something on Parkinson's product, to one then scale. be be and we're health all can for think will those to what is believe, distribution look closer for with we're now sudden, you the if move economics Obviously, that space we what contract those, you network the these part but sense. And a bringing you list about of about. say, growth and place, breast that, at can really multiple the of radio

Operator

with question comes the Evercore ISI. of Kumar next from line Our Vijay

Vijay Kumar

points. question XXX by my first was Jay, cut basis on guidance. Revenues

change doesn't income? points explain Any below-the-line think tweaked tax XX really basis other operating the assumptions I margins right? EPS, up expense,

James Saccaro

the below-the-line speaking, broadly mean, are assumptions unchanged. I No.

It's so we And revenue what we've forth. at it, reduction. look have a we as by supported put

China. of is see uncertainty we the a a it fairly to EPS lot wide it continues be a range, reflects think in and I that that fairly --

particular, line major in So delivering along the feel performance good changes we on with and of half, range. additional first below line, initiatives, the these -- given of about strong the no continued in about, feel some productivity this sight to the good but

Vijay Kumar

momentum, about NPI. for new spoken know And Understood. you've you. product Pete, I one

talked of about new about You that products launching, to some you're these launch.

software out. them had list Maybe into you've as is at a what back side bunch as think of incremental I we term? share the well. look medium And half

Peter Arduini

Yes.

come that I products think upgrades look, amount the line some -- got we've product product. with family significant and just a MR -- of the coming updates think value we've upgrade had to across across introduced I out we've business, multiple

that things case, and to that's the growth, lot learning a deep [ of in one DL capability our ] base in upgrades AIR upgrades. the think Recon MR driving our particularly is installed module I of

introduced Ultrasound line, has space, few quite in well. back is we versions updated logic This the quarter a plant. a done General product that particularly new Imaging, the In quite that

those care almost health in there's not in X better. volumes different And So plus we're if on our pacing women's derivatives seeing track, line. there,

a seen might You we Ultrasound was second half, our go pick revenue up. the as But in particular going to this have expect we in little that's into light quarter.

was orders our good positive. fact, pick up orders had In here. We

OEC business. almost a as with and bunch sign of software look positive that C-arm. IGT. Cath capabilities surgical mobile a We're well mentioned capabilities doing Lab that's So in-room There's C-arm we forward. I bring into applications new quite our vascular like a

share. I'd well in Our is room, on systems growing say monitors PDx particularly Allia the platform, which our monitoring doing we're nice we're the that some new are And with, seeing on side, pickup. quite themselves,

through So range. 'XX that's in the was talk broader we'll at Day, mentioning 'XX Investor about what to we're the I mix. And what going see then

we capabilities are within example. to where imaging, about broader Now an PET/CT how with give thinking MRI, Photon just Counting, we're next-generation

past years, So on and investments, highlight our track, some and those in November. of they're a we've the are Day of making well again, will few obviously, been for Investor bigger be the

Operator

with of from Sachs. David Roman Our comes next the line question Goldman

David Roman

I the that wanted little years. CT little you of past an because installed a bit of base like could underlying China stimulus and drivers take refreshed a and in you Maybe majority across look back it the just a in step has dig the the into as could bit data, third-party just Ultrasound further. unknown. looks X about to Understanding been of the is some at talk MR a bit China we vast

And just about China? outlook impacting the we it more stimulus in underlying medium-term should how is than growth think here? the So

James Saccaro

question. good David, Yes,

see look we growth China. as we talked this is a Historically, feel X% China, with as a to decline it. X%. growth our As in at about very market. year. But we about we've last growth We decline China then not this year seen good long installed of we age year Previously And had and to base the of see term we Day, double-digit related this year dynamics Investor at a our robust solid growth, very

year the they await Our activity stimulus. limited by much as clarity hospitals related very buying to is decline on this

lot one Counting equipment, I the As purchases it base, specific about lower the age refreshed higher pertains institutions or where the time at to that a recent frame you presence. thing your would in the comment of of installed referenced your end on note that major is and comment we're have versus hospitals we a

Ultrasound you've Imaging, with of and the is averages. age our it installed numbers kind is and as so that areas And consistent, above global the base described broadly speaking, at of look we like in

know really in think us of this there I overall, a add But dynamic anything. long So to play. term. Pete, continue I hospital market don't think will is be the we if you'd of do a tier nice for

Peter Arduini

Yes.

couple Jay, I a of think just facts. covered it, you but

you that As access. million about mean, I don't. the say, population China have There's billion pretty David, XXX people X.X know, good billion, X

capabilities partnership we that So able to into to untapped other broader Sinopharm with with market. reach have distributor a be

area. be to government the probably And be the growth investments of is that so making. that continue some It's part will to a also of going

The other to that actually tidbit is allowed isn't within China. sold be equipment used

there so recycling up It isn't in. all of used And equipment a equipment really coming ends being new around.

upgrades, United actually that where, particularly than markets in equipment. has higher bit other so a exist where have in China. That a haven't in States, movement quite growth the on of we doesn't and around effect And

based longer-term those we So just good when we look I potential about at is the on the feel numbers, pretty growth think facts. what

David Roman

heard comments capacity of helpful. the now constraints. That's follow-up your of a couple other hospital just companies super parts rooms on talk maybe and some the about facing U.S. a of about We've operating And

of around periphery of sit procedures GE? does of more side of the you. of the that into focus we sort of out And area for the to of see development in growth should heart or as these or from think should of you called we any about Do device here to implantable areas interest standpoint some "inside attractive kind an these EP going body" So about your change being for the on higher-growth Interventional of strategic we of contribution How that that EP? think segment? kind end thoughts markets structural tethering business then Imaging a You things? sort your your a lot how of

Peter Arduini

And connected or settings work articulated AI at Yes, features. David, outcomes a with we on level, or it's enable productivity state again, that drive a high this. care is we'll to strategy DX, which, together integrated we more the spend devices really digital disease a strategic focus better given obviously, time pathway around have But and question. smart some on look, good more in -- we

reality is, example so And if world-class features. hardware. that electrophysiology right didn't the now. years few you take probably we first can We a part labs, we had, the EP have the the ago, And you of it that is having all win do

we think did going winning those of we higher from labs, a a rate So than win we're standpoint in the to at past.

It's that I with we could the question, should your our more about thinking because because together, to states, value? it do, GE in solution. your of disease Or are devices, actually to solve with say, HealthCare. the about systems development from And up that to we On side. And what the does when horizons working channel create things benefits alignment we on lens actual to side that. does And well, should stage a say, company are better these one your ultrasound cardiovascular asset we on itself, have the disease that does absolutely, there's we're how we focused main this come opens up everything to reasons data a because the start you broader if answer buy X this should think more the expanding IGT primarily lot so work point, can created of be electrophysiology part we folks how problem? of to ultrasound, together customer this I partner more EP how

Operator

Our next Matt Jefferies. the Taylor question comes of line from with

Matthew Taylor

had guess I X PDx on business. question the I

You if Flurpiridaz? great growth, growth you that talked for few long-term on changes, the with growth imaging I I you're better or especially Medicare wondering the space. launch a them or the called molecular your [ the last just the hoping the if today outline calls that for couple -- you a the give contrast to was obviously, in? media seeing sense you've little changes markets a bit Vizamyl a how there, contributing that you Flurpiridaz you're about next contributing that And out positive about of year what could us guess thoughts was or big to feel they're for for of rate times opportunity I ] opportunity as

James Saccaro

new Overall, you to start that has Day comments well. and I'll Maybe relates PDx a A to well. us talk products it and saw business Pete over price about really about turn with that growing Vizamyl about this volumes more contributing. in relates of have Sure. we're in -- area long-term and quarter. of are a some specialty if whole new volume, really on. prior the of to XX% a volume, approval, new then still the XX% products small. expectations, on at talked the couple one call. point optimistic as few the this of think are is the been the about lot I with of to optimism with U.S. And points about And second investor term. also We Investor our the heard the in that along Vizamyl prior sales areas that very bit we relative tripling new We based this particular And CMS product changing little long

So dollars. we're few still million talking a

But as in of therapies, support continued uptake the of we area. to the diagnostics we're see Alzheimer's implementation programs interest seeing and this

continued to growth the see year. expect we throughout So

the working products growth to I could know both to we're accelerated of if in that like you'd CMS think don't add and year, unlock Vizamyl, Flurpiridaz next on. Pete, other I ruling the that. some

Peter Arduini

the we just than prior Yes. haven't example, frame paying up through what to be up hospital to of this take we're couple will optimistic on they're just for. were longer-term and might But more today a an be a needless the now for, $XXX product what getting the right is framed again, thousand we reimbursed dollars again, think approval. the we're I molecules. yet growth all And say, but of that working

paying they're at reimbursed for future, in Now it. what get they'll the

so going patient the have with build that very that an strong. actually creator to the program value higher them. is able how is discussion And be be for our to detail a a a about out capabilities And and to institution for to outcome confidence that's

aspect more documents the So many on and challenging with someone actually implement we companies of is if to you Cerianna tomorrow for process. think therapies. breast for about it's guidance diagnostics but situation, actually about doing what even probably day-to-day less on do a economical the about On that it's now, pharmaceutical other on cancer, changes. And metastatic it are what

And the kind GE diagnostic someone more like more space equipment, the capabilities integration, the data the the need to the that therapies that molecules of distribution the HealthCare come a has the you and in so out help solve equation.

this so investors, time the helpful but positive quite a strategies And this growth is spend with for on it's direction obviously we more and in will our coming very years.

Matthew Taylor

there. that to half starting your you And think some how on calling guidance Can do guess the second curious there? conservative trying the approach the peers talking competitors about through are -- more others I purposeful with that guidance the being Or follow-up given are orders about of your of you're come competitors, just they're year. same it? just aligned I'm China? ask you're with China as just if I'm back the do square just seeing being with X and to you comments your your talking things to uncertainty about your I to the think

James Saccaro

Sure.

Pete. start, over it So to just to and I'll turn

First half XX%. sales, decline in

second the the share $XXX in high this million a is midpoint, we tender about activity and anything leading in we number As of the the market market, versus year. the and a the look teens talking down at prudent to in we're the -- adjust number decline half market at orders think related, and

say taken the we the and we've sales. into third benefit least the would impact at a dynamic fourth. through very stimulus quarter, on orders out that from again, have on And also Now of I locked-up

watch Now point, upside? terms we today, But to quarter declines again, hopeful sales, really tough what right fourth will forecasted. XXXX at think we on we in a the be. a was prudent look And we is We time to the we could wrong market it that. I'm be. We'll in try have. about But broad-based GE to to we of on think as have continued it's item. market to at that was specific it view we impact better. thing impact the the as be felt this a This removed we not the do. do not this might But the carefully stimulus we've that and

Peter Arduini

point. the hit Jay think I

this comes back, timing to program. when this China stimulus again, So for really the us, is related of largely

you we We betting some time hence, But take to would uptick here win and we're coming installed that on that tender, see business out. take So which got equipment sales case we particularly is year. think we piece mentioned, very get our look to I through install secured timing. well, at really between an a expect order to tight. it, room would it And tied just be the decided have have the the ready we've what's our when we to later this the why not base order, a lined base, orders our the half. And have we out second as

Operator

Our question UBS. from with Doyle comes of line next Graham the

Graham Doyle

I got China. a follow-up on

And to today. year, a magnitude Matt decline the in your revenue. anywhere of that both point I I with the was does midterm is? Philips and starting it like market they're volatile sound targets mean, near And made, a given then obviously large of the assumption, just your do And It kind called original like out is me of like So make just with change. when sort number. that confidence versus kindly -- you Jay, wonder XX% me the there's down you half so how Siemens China second in very looks actual what's from to I in not HX which forecasting that next very,

monitoring So something get that is would it is others patient color. seeing? genuinely maybe the to Or be market that just a are there prudence? great It say, happening lot in, the more

Peter Arduini

China, ultrasound in mean, I an start. can primarily I business Graham, look, for story. it's our Yes, imaging

products. have us mixes of of All different

match. I'll So obviously a But did. one-to-one we there's not tell you what

to and understand of to that and to the understand big a what questions, asking you're what you're provinces, up, actually buy, that, we to buy, and going customers roll try up long each force we've look XX is of our when based the how have that's going do rollout, saying, get then just then out mix. timing based to the to XX would takes think all what And our orders how for done to sales be it do that going how Providence to pulling the but we do an on think takes when what actually order, don't standpoint. long clock it be there's but we what there's install they're So like. And we we to that much we on kind enough time of all going tender, from just look all it we coming to to it the guess, Jay's take wrong, we're might to time on the a thought sales from out. not trying and business in point, of prudent And

Graham Doyle

Okay.

] the the because it in the At seem place? QX did to certain why at point it not there this [ first context guidance? Like what year, something didn't it to into like you stimulus was was start. of Just question, was the of in that that start the put

I'm figure trying just So [indiscernible] taken how have much to more down? you out will

Peter Arduini

XX, Keep quickly. ramped within to came question. mind, fair stimulus months, the X very when unbelievably a it Look, in Yes. in X

probably may if not, But is, as same it is year, not recall. got going slower when ramp, stimulus super get is it QX, the it there if follows the now, government if fact the closer we to actually it's sale. XX% something within may think I started going you we as think the to wasn't to to was what deciding the I that support so the buy, And question new to from -- clear be or you be your you this buy someone's value XX%, year. What's XX%, and

stimulus going the to a take anybody difference I think wait decision is. that calculation make really to that That's the that of kind longer. So would much here to naturally, you're see what don't in saw

James Saccaro

we're long to clarity. demand a seeing thing is a level relative the -- good see think But in we QX positive is as We thing it so activity depressing stimulus as like await even far. is quarter-to-date, market only the to of the is saw it QX, term. market, as thus in in this the normal mean depressed I people not add we

And that we so that's assumption we why did. made the

Operator

line Our next Patrick Wood comes Stanley. question the Morgan of from with

Patrick Wood

I like if mentioned was this guys plus organic. that I thought you X% QX heard something Apologies wrong.

the those QX relative I XQ, function And so helpful. you implied of how the to of the could really U.S. be unpack a launches much imaging just step-up, Apologies that but ultrasound earlier, is missed qualitatively, strong if market? would if this

James Saccaro

A talking order taking form step XX% either booked we of the down quarter our performance and ex-China strong when for confidence in comes saw QX about is PDx. recurring or of about we business, in delivery the of lot the QX, the and to services Sure. that second that maybe a in Patrick, this back revenue revenue revenue, generally. for

low. categories these around volatility the is say reasonably would I And

predictability. decent have We

Now equipment. the remaining XX% is

us, think is in equipment so for for a And as have scheduled the we backlog given the of which rate, one equipment, at look quarter. things we security about the that's is we that the

grabs XX% our up from the the coming So we the we this quarters, given of Over in secured each phenomenon, see really of around revenue in last X the XX% that backlog, quarters. for installed quarter, quarter. rate right? That's a speaking had again, and XX% the the a is of equipment in other generally with in sold

second not going the at we the than into if As we see slightly the the split of half. second look year, half better this similar, historic XX-XX

we really, deliveries the to it backlog But step-up this down and step-up, we're so it a comes expecting from And there's QX to what the normal QX confidence, as in when take level high of those to why relates specific QX. to have place.

really, step-up. driver around the So that's the

some which the continued the about. your expecting point, we good the out But of QX feel Of see robust have supports also again, of launches. step-up, continued course, new see we we're that market. We're really to to to going analytics this performance on product performance U.S.

Peter Arduini

and it, of actually larger service the now had point some the higher on already a second growth that can a a is we're some the with think share books. already margin. contract expecting ago, see up it. contracts service gains equipment and half, just I you we books. on other few Jay, have year second the It's We'll on it's on And we our of expecting has half, obviously, points the growth, the during not touched step the we've in

Patrick Wood

few the here. to warranty point U.S. follow-up. ran the math, instinct have Good on number X It's out. got base, like the back time it's old. that age, know hits kind this tried since a don't average Yes. Very installed years so I pretty how but of if I been something it quick on you I I last any X role. years,

Peter Arduini

Yes.

a I think at average, -- by varies on if in installed It it that. than base taking a quite too, I it's based think, obviously by modality. or the little a overall, varies own your bit bit company, older you're look

older probably in modalities, years than that. some few particularly it's a have even We MR, where

installed doing at we of ours the well of boding because and we And actually that's needed a stuff amount age. a plus when conversion. so upgrades for cycle take reasonable base, whole But look the of there's really the now us right believe on replacement

Operator

coming is question Company. line from with & Oppenheimer last our the Kalia of And Suraj

Suraj Kalia

Peter, way. for impact. the And differential guys this really of throw you assessing questions both these them, both are of designed I'll

on question piggyback first to wanted Peter, So China, from on David's earlier. I

impact? for thinking, equally? up opens there differential looking Or you China, maybe set a is the book-to-build within people? also China Will stage, competitors me right. is value how when the local Your will tide partnerships, rising are should part think talking local. be lift do impact? And And about specifically how the for what And we the give everyone of different them competitors the is segment, us is one I'll in GE's about understand doing. think your way. buffers in Peter, about what again, an that's for up, second differential talking Help especially X And the opens growth are also China Medicare Radiopharmaceuticals, quickly given networks edge pharmacy the question. that your radiopharmaceuticals. when throw

Peter Arduini

better say, I else. if Sure. anyone look, know don't China, I any crystal ball have would than on I

we that will some everyone assumption There's the think multinational benefit lot China rising level. players. Obviously, at are local a a of making there's competition. I

We've point. for everybody China been think at different I over we years, XX a for the will market. source play locally in manufacturing

And be to more you company. And value-based as local a compete we're very believe areas west a just focused need we of capabilities. that non even can so actually move we into and on, like the product into cities you postal the

sides X I how there's And there. we've don't But that play so and comments also China of have can got very know I on will to the if I better end there. you And high that's don't insights add to think want competitive type think value. that I lineup any relative out. Jay, any be we

James Saccaro

that share that we'll we position the in that it but I we that teams that we we've manufacturing been feel I China, And think ground a do on large of to mean, China, the described. time, have time. very about able over for to watch protect lot Sure. the Pete good the over comes down

standpoint, share a far. from thus So we've effective fairly been

all forward, as stimulus, look plans market believe be next in to we have so that and And that. at participate we're designing going execute on we'll the to we able reasons to

Peter Arduini

of for companies switch question cyclotrons very your everything and we if -- capabilities to an becomes about don't isotopes time you exam we're own technology Investor hours, these of of institution, could of allows important multi-head system, head what Day. your the you staging look, to where some have the of that on the more PET/MR. XX-plus do unique it's at PET and to kind the on-site that, that And you again, But spend again, camera as well has super be if again of one X.X us XX our on that relative spec So drugs. And few radiopharmaceuticals. in world our this PET/CT, we'll And from makes part that oncology if think and actually minutes. system kind generation as at our

do with the that the do this isn't I if larger are would argue CMS make here have we you real have of it. change, Network, some distribution distribute phases value there's other it's structure. structure. much a There So players distribution that. you it, actually can a

be of And value going molecules believe on of been fair been do as given relative transformational going share that to in create. It's to on a preliminary molecules growth definitely so diseases. these argue these the X. for going it treated more certain is significantly would ways rule. We haven't to because they've we that's diagnosis a could handicapped we January think If to that come we see they into their estimated being are you're effect had supply. actually some make than does, they reimbursement And you they

come. more invest question. us to out gives a this continue to on. your more that for space build say obviously, And So and to obviously, to is Thanks energy

Operator

Q&A session. proceed And this remarks. the any with closing concludes Please

Peter Arduini

us for everyone, the at months. one we and in days with few our next to you, Thank joining the look today, forward coming of connecting you in conferences

York so Day Investor As for host we'll in a New Thanks listening. much XX. on reminder, November our

Operator

all now you today's disconnect. and may in you conference, who participated thank And

GE HealthCare (GEHC) 31 Jul 242024 Q2 Earnings call transcript