GE HealthCare said healthy demand during the latest quarter drove an increase in orders, which in turn provided a boost to sales and profitability.
The medical-technology company said Wednesday that total orders were up 11% during the second quarter, outpacing its expectation for mid-single-digit growth. Chief Executive Peter Arduini attributed the increase to strong commercial execution and the adoption of new products
"We saw orders growth across all of our segments, with particular strength in several of our longer cycle products in radiology," he said on a call with analysts.
Quarterly revenue came in at $5.3 billion, up 5.8% from last year and ahead of Wall Street models. Profit also rose and beat analyst expectations, according to FactSet.
Shares ended the regular session Wednesday up more than 12% at $71.90.
Arduini attributed GE HealthCare's revenue growth primarily to strength across its advanced imaging solutions arm, as well as its pharmaceutical diagnostics unit.
Advanced imaging solutions--the company's largest segment--notched revenue of $3.77 billion, up 7.9% from last year. Its fastest-growing segment was pharmaceutical diagnostics, with revenue up 16% to $843 million.
Meanwhile, performance across GE HealthCare's patient-care solutions unit remained challenged. Revenue fell 13% to $675 million.
"In Patient Care Solutions, while we are focused on returning the business to growth and profitability, we are reviewing strategic options to maximize its long-term value.," Arduini said.
Looking ahead, the company guided for organic revenue growth of 3% to 4% during the current quarter. Adjusted earnings per share are expected to climb in the low-double-digit range over the same period.
GE HealthCare backed its profit outlook for the year, calling for adjusted earnings of $4.80 to $5 a share. It also reaffirmed its forecast for full-year organic revenue growth of 3% to 4%.
The outlooks came as the company posted a profit of $561 million, or $1.24 a share, for its three months ended June 30. That is up from $486 million, or $1.06 a share, a year earlier. Stripping out one-time items, adjusted earnings came in at $1.13 a share, topping analyst views for $1.04 a share.