As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the medical devices & supplies - imaging, diagnostics industry, including GE HealthCare (NASDAQ: GEHC) and its peers.

The medical devices and supplies industry, particularly those specializing in imaging and diagnostics, operates with a comparatively stable yet capital-intensive business model. Companies in this space benefit from consistent demand driven by the essential nature of diagnostic tools in patient care, as well as recurring revenue streams from consumables, service contracts, and equipment maintenance. However, the industry faces challenges such as significant upfront development costs, stringent regulatory requirements, and pricing pressures from hospitals and healthcare systems, which are increasingly focused on cost containment. Looking ahead, the industry should enjoy tailwinds from advancements in technology, including the integration of artificial intelligence to enhance diagnostic accuracy and workflow efficiency, as well as rising demand for imaging solutions driven by aging populations. On the other hand, headwinds could arise from a rethinking of healthcare costs potentially resulting in reimbursement cuts and slower capital equipment purchasing. Additionally, cybersecurity concerns surrounding connected medical devices could introduce new risks and complexities for manufacturers.

The 4 medical devices & supplies - imaging, diagnostics stocks we track reported a slower Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results.

Best Q1: GE HealthCare (NASDAQ: GEHC)

Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ: GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.

GE HealthCare reported revenues of $4.78 billion, up 2.8% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ organic revenue estimates.

GE HealthCare President and CEO Peter Arduini said, “First quarter results reflect strong execution as we start the year with robust revenue, orders and profit growth, which were driven by strength in the U.S. We remain focused on delivering on our precision care and growth acceleration strategies, underscored by the closing of our acquisition of Nihon Medi-Physics, which we expect will increase global access to our next-generation radiopharmaceuticals. Regarding the current global trade environment, we are actively driving mitigation actions. We continue to see strong customer demand in many of the markets we serve and are well-positioned to drive long-term value as we invest in future innovation.”

GE HealthCare pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 11.7% since reporting and currently trades at $76.08.

Is now the time to buy GE HealthCare? Access our full analysis of the earnings results here, it’s free.

QuidelOrtho (NASDAQ: QDEL)

Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ: QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems.

QuidelOrtho reported revenues of $692.8 million, down 2.6% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a mixed quarter with an impressive beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.

QuidelOrtho scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 16.9% since reporting. It currently trades at $30.19.

Is now the time to buy QuidelOrtho? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Lantheus (NASDAQ: LNTH)

Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.

Lantheus reported revenues of $372.8 million, flat year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

Lantheus delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 23.2% since the results and currently trades at $80.41.

Read our full analysis of Lantheus’s results here.

Hologic (NASDAQ: HOLX)

As a pioneer in 3D mammography technology that has revolutionized breast cancer detection, Hologic (NASDAQ: HOLX) develops and manufactures diagnostic products, medical imaging systems, and surgical devices focused primarily on women's health and wellness.

Hologic reported revenues of $1.01 billion, down 1.2% year on year. This number met analysts’ expectations. More broadly, it was a slower quarter as it logged a slight miss of analysts’ full-year EPS guidance estimates.

The stock is up 13.7% since reporting and currently trades at $65.08.

Read our full, actionable report on Hologic here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.