Dj Ge Hlthcr Techs Price Target Raised To $94.00/Share From $91.00 By Piper Sandler

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at medical devices & supplies - imaging, diagnostics stocks, starting with GE HealthCare .

The medical devices and supplies industry, particularly those specializing in imaging and diagnostics, operates with a comparatively stable yet capital-intensive business model. Companies in this space benefit from consistent demand driven by the essential nature of diagnostic tools in patient care, as well as recurring revenue streams from consumables, service contracts, and equipment maintenance. However, the industry faces challenges such as significant upfront development costs, stringent regulatory requirements, and pricing pressures from hospitals and healthcare systems, which are increasingly focused on cost containment. Looking ahead, the industry should enjoy tailwinds from advancements in technology, including the integration of artificial intelligence to enhance diagnostic accuracy and workflow efficiency, as well as rising demand for imaging solutions driven by aging populations. On the other hand, headwinds could arise from a rethinking of healthcare costs potentially resulting in reimbursement cuts and slower capital equipment purchasing. Additionally, cybersecurity concerns surrounding connected medical devices could introduce new risks and complexities for manufacturers.

The 4 medical devices & supplies - imaging, diagnostics stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.3%.

Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.

Weakest Q3: GE HealthCare

Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.

GE HealthCare reported revenues of $5.14 billion, up 5.8% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with a narrow beat of analysts’ organic revenue estimates.

GE HealthCare President and CEO Peter Arduini said, “We delivered robust orders with growth across all segments in the third quarter. This was led by customer demand for our differentiated solutions and a healthy capital equipment environment. Revenue performance was driven by Imaging, Advanced Visualization Solutions, and Pharmaceutical Diagnostics, and was ahead of our expectations. We continue to see momentum with commercial execution, where our teams leverage our broad portfolio and services, creating sustainable revenue and strengthening customer relationships. As a result of our increased R&D investments, we are entering a new wave of innovation and, coupled with our focus on lean, we expect to accelerate top and bottom line growth.”

GE HealthCare delivered the weakest performance against analyst estimates of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $79.64.

Best Q3: QuidelOrtho

Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.

QuidelOrtho reported revenues of $699.9 million, down 3.7% year on year, outperforming analysts’ expectations by 5.2%. The business had a strong quarter with a solid beat of analysts’ constant currency revenue and EPS estimates.

QuidelOrtho pulled off the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $28.10.

Lantheus

Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.

Lantheus reported revenues of $384 million, up 1.4% year on year, exceeding analysts’ expectations by 5.2%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ revenue estimates and full-year revenue guidance slightly topping analysts’ expectations.

Lantheus delivered the biggest analyst estimates beat but had the weakest full-year guidance update in the group. Interestingly, the stock is up 17.6% since the results and currently trades at $67.30.

Read our full analysis of Lantheus’s results here.

Hologic

As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.

Hologic reported revenues of $1.05 billion, up 6.2% year on year. This number beat analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ revenue estimates.

Hologic delivered the fastest revenue growth among its peers. The stock is up 1.5% since reporting and currently trades at $75.13.

Read our full, actionable report on Hologic here, it’s free.