Revenue: $4.6 billion in Q1 2024, approximately flat organically year-over-year.
Organic Orders: Increased 1% year-over-year, primarily driven by strength in the U.S.
Book-to-Bill: Total company book-to-bill of 1.03x, up from 1.01x last year.
Backlog: Exited the first quarter with a healthy backlog of $18.7 billion.
Adjusted EBIT Margin: 14.7%, up 50 basis points year-over-year.
Adjusted EPS: $0.90, up 6% year-over-year.
Free Cash Flow: Generated $274 million, driven by improved working capital.
Future Guidance
2024 Full Year Guidance: Reaffirmed, expecting modest sequential improvement in Q2 organic sales growth and adjusted EBIT margin.
Revenue Growth: Stronger in the second half of the year.
New Product Launches: Expected to accelerate growth in ultrasound.
Expected Growth Areas: Imaging, supported by healthy backlog and large order funnel; continuing growth in PDx business; improvement in PCS backlog fulfillment challenges by mid-year.
Trends, Market Conditions, Sentiment
Capital Investment: Positive sentiment among customers about capital investment and market normalization, particularly in the United States.
Healthcare Demand: Strong global procedure environment expected to continue, with a more connected, efficient, and patient-centric healthcare market.
Innovation and Investment: Continued investment in innovation, including partnerships and strategic initiatives, aimed at solving evolving customer and patient needs.
Market Challenges: Fulfillment delays and prior year comparisons as challenges; anticorruption impacts and stimulus considerations in China.
Product and Service Growth: Good growth opportunities identified in both product and service sectors, supported by a growing installed base.
Notable Quotes
”We’ve made good progress against our key priorities for 2024. Healthy backlog, orders growth and positive book-to-bill position us for accelerated growth for the rest of the year.” - Peter Arduini, President and CEO.
”Our strategic initiatives and trusted partnerships are taking hold and position us well for a future where health care is more connected, efficient and patient-centric.” - Peter Arduini.
”We’re executing on significant capacity investments to strengthen the security of supply for our customers and to deliver on our patients’ needs.” - James Saccaro, Vice President and CFO.
”We’re excited about recent product introductions across our segments to address customer challenges and improve patient outcomes.” - Peter Arduini.
