GE Healthcare Earnings: No Visibility on Timing of China Rebound, but Margin Improvement Intact

Wide-moat GE HealthCare reported third-quarter earnings that were aligned with our expectations, with declines in China offsetting growth in other regions. Although the timing of the rebound in China sales remains unclear, we are encouraged by the company’s improving operating profit margins. We maintain our fair value of $98 per share and view shares as slightly undervalued at current market prices.