GE Healthcare on Wednesday morning reported a mixed second quarter and shares initially moved sharply lower. The stock then reversed higher as the post-earnings call got underway. Management made it clear that they believe weakness in China is temporary and see many other levers available to grow earnings.

• Revenue advanced less than 1% year over year to $4.84 billion, missing expectations of $4.87 billion, according to analyst estimates compiled by LSEG. Organic revenue growth was 1%.

• Adjusted earnings rose 8.7% to $1.00 per share, beating estimates by 2 cents. 

• Guidance: GEHC updated its outlook for the remainder of the year, now predicting organic revenue growth of 1% to 2%, down from the “approximately 4%” forecast previously provided, and below the 3.4% the Street was looking for.

It was not a surprise that China was a key source of weakness in the quarter, and the primary factor forcing management to downwardly revise its full-year organic growth outlook.

It’s early yet, but the team is hopeful about the growth potential in an amyloid agent used in imaging Alzheimer’s patients, now that Eli Lilly’s Kisunla treatment has been approved, along with Leqembi from Eisai and Biogen.

In the meantime, GE Healthcare management continues to execute at a high level on what they can control, and they’re finding more ways to improve efficiency and, in turn, profitability. That’s why GEHC was able to flip from being down roughly 9% on the release to positive by the time the call wrapped up.