Why GE HealthCare Technologies Surged Higher Today
General Electric spinoff GE HealthCare Technologies (NASDAQ: GEHC) Shares were up 8.6% by 11:30 a.m. today. The move comes after the market digests its preannounced preliminary fourth-quarter and full-year earnings, as well as its initial outlook for 2023.
According to the release, organic fourth-quarter revenue growth will be a whopping 12%. Meanwhile, adjusted earnings before interest and taxation (EBIT) will come in above the $2.6 billion forecast on the investor day in December. Free cash flow (FCF) is expected to come in "toward the low end" of the $2.1 billion to $2.3 billion range given in December. For reference, these figures exclude carve-out adjustments coming from the spinoff from GE.
The results are good, and the guidance for 2023 is also positive. Management expects 5% to 7% organic revenue growth with margin expansion and FCF conversion from adjusted net income of 85%.
Source Fool.com
