(Reuters) – GE HealthCare Technologies beat estimates for quarterly profit on Wednesday as strong demand for its medical devices in the U.S. offset slowing sales in China due to disruptions in the country’s healthcare sector because of an anti-corruption drive.
The company also raised the lower end of its annual adjusted profit forecast to $4.25 per share from $4.20 previously, keeping the upper end at $4.35.
Analysts on average were expecting $4.25 per share, according to data compiled by LSEG.
“Both sales and orders grew in the mid-single digits excluding China, with particular strength in the U.S. across all segments,” said CEO Peter Arduini.
Sales in the U.S. and Canada rose 8% to $2.25 billion, but were down 22% at $564 million in China.
Medical device makers have been benefiting from increased demand for heart procedures and non-urgent surgeries such as hip and knee replacements over the past few quarters especially among older adults, who deferred these procedures during the pandemic.
However, the company said it expects revenue growth trending towards the lower end of its forecast of 1% to 2% growth year-over-year, given the continued softness in the China market, which brought in 14.2% of its revenue last year.
GE HealthCare’s sales have been hurt in the last few quarters due to a freeze in China’s healthcare sector amid an anti-corruption campaign, which is targeting the bribing of doctors in drug and medical equipment sales, and a delay in the country’s 2024 stimulus.
GE HealthCare’s total third-quarter sales came in at $4.86 billion, versus estimates of $4.87 billion.
Excluding one-off items, GE HealthCare earned $1.14 per share, beating estimates of $1.05 per share.
(Reporting by Puyaan Singh in Bengaluru; Editing by Krishna Chandra Eluri)
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