GE HealthCare Technologies Inc. (NASDAQ:GEHC) Q2 2024 Earnings Conference Call July 31, 2024 8:30 AM ET

Company Participants

Carolynne Borders - Chief Investor Relations Officer
Peter Arduini - President & CEO
Jay Saccaro - VP & CFO

Conference Call Participants

Joanne Wuensch - Citi
Larry Biegelsen - Wells Fargo
Anthony Petrone - Mizuho Group
Vijay Kumar - Evercore ISI
David Roman - Goldman Sachs
Matthew Taylor - Jefferies
Graham Doyle - UBS
Patrick Wood - Morgan Stanley
Suraj Kalia - Oppenheimer

Operator

Good day, everyone, and thank you for standing by. Welcome to GE Healthcare's Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I will hand the call over to the Chief Investor Relations Officer, Carolynne Borders. You may begin.

Carolynne Borders

Thanks, operator. Good morning, and welcome to GE Healthcare's second quarter 2024 earnings call. I'm joined by our President and CEO, Peter Arduini; and Vice President and CFO, Jay Saccaro.

Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's press release and in the presentation slides available on our website.

During this call, we'll make forward-looking statements about our performance. These statements are based on how we see things today. As described in our SEC filings, actual results may differ materially due to risks and uncertainties.

And with that, I'll hand the call over to Peter.

Peter Arduini

Thanks, Carolynne, and thanks to all those joining us today. In the second quarter, we delivered 1% organic revenue, and 3% orders growth with all segments contributing. We also expanded margins despite headwinds in the China market. We saw particular strength in the U.S. given replacement cycles and increased use of imaging across disease stage for diagnostics, and resilience in the ultrasound market. Excluding China, global revenue growth was 4%, and orders growth was 6%. We believe we're gaining market share in each of our segments, and we are continuing to invest in products and services that will accelerate growth in the future.

As it relates to China performance, we previously communicated that the region would experience negative sales growth in the first half as we face a challenging compare. At the time, we expected positive sales growth in the second half. Today, the prolonged timing of the rollout of the new stimulus announced earlier this year is impacting timing of orders and sales. We expect a continued sales decline in China year-over-year in the second half, and we anticipate growth in China will be negative for the year. As a result, we're lowering our total company full year organic revenue growth guidance.