As you might know, GE HealthCare Technologies Inc. (NASDAQ:GEHC) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$4.8b, some 2.6% above estimates, and statutory earnings per share (EPS) coming in at US$1.23, 38% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GE HealthCare Technologies after the latest results.

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Taking into account the latest results, the current consensus from GE HealthCare Technologies' 19 analysts is for revenues of US$20.3b in 2025. This would reflect an okay 2.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to drop 11% to US$4.23 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$20.0b and earnings per share (EPS) of US$4.46 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

View our latest analysis for GE HealthCare Technologies

It might be a surprise to learn that the consensus price target fell 8.5% to US$89.26, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values GE HealthCare Technologies at US$110 per share, while the most bearish prices it at US$74.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that GE HealthCare Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.1% growth on an annualised basis. This is compared to a historical growth rate of 4.1% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than GE HealthCare Technologies.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GE HealthCare Technologies' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of GE HealthCare Technologies' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for GE HealthCare Technologies going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with GE HealthCare Technologies .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.