GE Boosts FY23 Outlook As Q3 Results Top Estimates

Industrial conglomerate General Electric Co. (GE) reported Tuesday a net profit for the third quarter that sharply increased from last year, driven by improved profit margins and 20 percent revenue growth. Adjusted earnings per share and quarterly revenues topped analysts’ expectations. The company also raised its outlook for the full-year 2023.

In pre-market activity on the NYSE, GE shares are trading at $111.00, up $4.31 or 4.04 percent.

GE Chairman and CEO Lawrence Culp, Jr. said, “GE delivered another quarter of very strong results with double-digit growth in revenue, profit, and cash. At GE Aerospace, we continue to experience rapid growth driven by robust demand and solid execution, largely in Commercial Engines and Services.”

For the third quarter, GE reported a net income of $0.23 per share, sharply higher than $0.08 per share in the prior-year quarter.

Earnings from continuing operations attributable to common shareowners was $84 million or $0.08 per share, compared to a loss from continuing operations of $313 million or $0.29 per share in the year-ago quarter.

Excluding items, adjusted earnings for the quarter were $0.82 per share, compared to last year’s adjusted loss of $0.17 per share. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share for the quarter. Analysts’ estimates typically exclude special items.

Total revenues for the quarter grew 20 percent to $17.35 billion from $14.47 billion in the same quarter last year. Analysts expected revenues of $15.70 billion for the quarter. Organic revenue was up 18 percent.

Total orders for the quarter grew 19 percent to $17.9 billion and increased 18 percent organically.

Profit margin for the quarter improved 330 basis points to 1.7 percent.

GE Aerospace revenues improved 25 percent to $8.41 billion on a reported and organic basis, led by Commercial Engines and Services. Orders of $9.79 billion increased 34 percent.

Revenues from Renewable Energy, part of GE Vemova, grew 15 percent to $4.15 billion and up 14 percent organically. Orders grew 5 percent to $3.9 billion.

Revenues from Power, part of GE Vemova, were up 13 percent to $4.26 billion from last year. Orders of $4.26 billion increased 2 percent.

Looking ahead to fiscal 2023, the company now projects adjusted earnings in a range of $2.55 to $2.65 per share on organic revenue growth in the low teens. Previously, the company expected adjusted earnings in the range of $2.10 to $2.30 per share on organic revenue growth in the low-double-digit range.

The Street is currently looking for earnings of $2.36 per share on a revenue decline of 16.7 percent to $63.76 billion for the year.

The company also said it is looking set to deliver between $4.7 billion and $5.1 billion of free cash flow in 2023, up from the prior forecast between $4.1 billion and $4.6 billion.

The company also said it is well-positioned to launch GE Aerospace and GE Vernova as independent companies in the beginning of the second quarter of 2024.

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