Medical Imaging

Earnings Season Momentum

As medical imaging vendors wrap up another quarterly earnings season, most radiology companies for the November to January period continued with the momentum they showed in the fall of 2023

Large multimodality OEMs in particular saw continued success, with most saying that hospital capital equipment purchasing is crawling back to a normal level. Smaller vendors and niche players were more likely to struggle, on the other hand. 

Accuray – This radiation therapy vendor saw sales at constant exchange rates drop (-8% to $106M) while its net loss grew (-$9.6M vs. -$1.9M). 

Canon – Canon’s medical business unit enjoyed strength in Europe and Japan and in MRI, X-ray, and ultrasound, propelling the division to record quarterly revenues (8.9% to $1.12B) while operating profit boomed (38% to $93.3M). 

Fujifilm – Fujifilm saw revenues grow in its healthcare division (+10% to $1.65B) thanks to steady sales of endoscopes and CT/MRI scanners. The company has also seen strong sales of mobile X-ray systems in the US and PACS and 3D software in the US and Europe.  

GE HealthCare – GE HealthCare turned in a strong final quarter in its first full year as an independent public company thanks to good revenue growth (5% to $5.21B), with segment revenue increasing in imaging (4%), pharmaceutical diagnostics (25%), and patient care solutions (5%), making up for a decline in ultrasound (-1%). Net income slipped on lower margins (-27% to $416M). 

Hologic – Hologic continued to put supply chain problems in the rearview mirror, seeing quarterly revenue jump in its breast health business (12% to $378M). The company’s overall net income spiked (32% to $247M). 

Konica Minolta – Revenue after currency adjustment edged up in Konica Minolta’s medical business (2% to $236M) but the division posted an operating loss (-$11M) on “restrained investments” that slowed the US hospital market.  

Philips – Philips saw revenues after currency adjustment grow 5% in its diagnosis and treatment division for its final quarter of the fiscal year ($2.7B), while operating income slipped ($142M vs. $200M). Sales grew in the high single digits in image-guided therapy. 

Siemens Healthineers – Strong revenue growth in its Varian radiation oncology business (22%) helped offset a decline in COVID-19 antigen testing to propel an overall increase in Siemens’ first fiscal quarter sales. The company’s imaging segment grew 5.3% to $3B and advanced therapies was up 5% to $511M, while Varian reported sales of $981M.

Varex – Due to a 13% drop in medical segment sales, Varex saw quarterly revenues decline (-8% to $190M). The digital X-ray vendor fell into the red for the period against the year-ago quarter (-$400k vs. $3.2M).

The Takeaway

This earning season’s results show that radiology continues to emerge from COVID’s long shadow with building momentum. Future earnings periods will hopefully demonstrate continued prosperity.

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