"GE HealthCare reduced its full-year 2026 adjusted EPS range to $4.80 to $5.00, down from $4.95 to $5.15, and lowered free cash flow guidance to roughly $1.6 billion from $1.7 billion."
"Shares fell 13.2% on the day, a reaction that is outsized compared to the average day-of move of −0.55% across the prior four reports."
"CEO Peter Arduini cited a PDx supplier issue that has since been resolved and significant increases in memory chips, oil and freight costs that management expects to persist."
GE HealthCare trades at $59.49, significantly below the Wall Street target of $89.74, indicating a potential upside of 50.8%. The company, which generates $20.6 billion in annual revenue, recently cut its full-year profit guidance, leading to a 13.2% drop in shares. The adjusted EPS range was lowered to $4.80 to $5.00, and free cash flow guidance was reduced to $1.6 billion. Despite these challenges, analysts maintain a bullish outlook, with three rating it Strong Buy and ten at Buy.
Read at 24/7 Wall St.
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