As RSNA 2023 approaches, medical imaging vendors appear to be on a roll when it comes to financial results. In the weeks leading up to the meeting, companies have posted numbers that for the most part are strongly positive and appear to be leaving the bad old days of the COVID-19 pandemic behind.
Agfa – Between Agfa’s two imaging divisions, healthcare IT continues to outperform the radiology solutions business. Healthcare IT saw growth in revenue (3.3% to $67M) and EBITDA (44.3% to $6.4M), but revenue declined at radiology solutions (-5.7% to $127M) as did EBITDA (-21% to $10M).
Canon – Canon Medical Systems saw firm revenues in Japan and Europe, which propelled the business unit to higher revenues (5% to $913M) while income before taxes edged up (0.3% to $46M).
Fujifilm – Revenues tapered off slightly in Fujifilm’s healthcare business at constant currency rates (-1.9% to $1.66B) as a 12.4% decline in its contract manufacturing business offset 1.7% growth in medical systems. Operating income in healthcare slipped due to a one-time benefit in the year-ago quarter (-6.5% to $217M).
GE HealthCare – Revenue growth in its molecular imaging and CT businesses helped propel GE HealthCare’s revenue growth (5.4% to $4.82B), assisted by 13% growth in pharmaceutical diagnostics and a 9% increase in patient care solutions. Net income was lower (-23% to $375M).
Guerbet – Strong revenues for the third quarter in Asia (+15%) and stability in the EMEA region (0.6%) helped counter a decline in the Americas (-5.2%), enabling Guerbet to turn in overall quarterly revenue growth at constant exchange rates (2.3% to $212M). The company expects sales of its Elucirem MRI contrast agent to ramp up in the fourth quarter.
Hologic – The semiconductor shortage that had impacted Hologic in previous quarters eased, leading to a sharp jump in revenues in the company’s breast health business (27% to $353M). The rebound didn’t extend to Hologic’s overall net income as its net margin narrowed (-24% to $91M).
Konica Minolta – A decline in sales of X-ray systems to hospitals in its core market of Japan and a slower US hospital market produced lower revenues in Konica Minolta’s healthcare division (-5% to $238M), and the business posted an operating loss (-$5.5M).
Philips – Philips rebounded in the most recent quarter, with revenues in its diagnosis and treatment division rising sharply after currency conversion thanks to double-digit growth in all businesses (14% to $2.39B). Operating income doubled (to $272M).
RadNet – RadNet saw a double-digit jump in revenues (15% to $402M) while net income leaped ($17.5M vs. $668k). Revenue jumped 221% in the company’s AI segment, which made progress narrowing its EBITDA loss (-$2.5M vs. -$4.5M) on higher consumer adoption of its Enhanced Breast Cancer Detection offering.
Siemens Healthineers – Siemens Healthineers closed its financial year with “outstanding” 8.3% revenue growth at constant exchange rates, including double-digit growth in its imaging business (11% to $3.62B) while adjusted EBIT edged up (2% to $812M). Its Varian radiation therapy business saw a strong recovery in revenue (30% to $1.1B) and adjusted EBIT (90% to $207M).
Varex – Growth in Varex’s industrial X-ray imaging business propelled the company to higher overall revenues even as revenues in its medical business fell (-9.8% to $164M). The medical division’s gross profit also slipped (-7% to $53M).
The Takeaway
Not every company was a winner in this last round of quarterly earnings, but at least the macroeconomic headwinds of the COVID-19 pandemic are fading. The fourth calendar quarter is typically radiology’s strongest period due to the impact of the RSNA conference on equipment purchasing, so let’s hope the momentum continues.
