Business & Investment

GE’s share price fell and full-year profit outlook was lower than expected due to shy earnings while the FCF was above

General Electric shares fell early Tuesday. This was after the industrial conglomerate reported better than expected free cash flow in the fourth quarter, but earnings were a bit shy and the full-year earnings outlook was sluggish.

It recorded the first quarterly performance since November GE blockbuster announcement Planned to split into three independent listed companies and changed the one-column report in the financial statements from a three-column report to a one-column report.

In a single-row report, adjusted profits were lower than Wall Street’s expectations.

GE stock
GE,
+ 0.63%

After a 0.6% bounce on Monday and a four-day losing streak, it fell 2.5% in pre-market trading.

The company turned from a net income of $ 2.44 billion ($ 2.20 per share) in the year-ago quarter to a net loss of $ 3.90 billion ($ 3.55 per share).

Excluding non-recurring items, adjusted earnings per share rose from 58 cents to 92 cents. Under “New One-Column Report Format,” GE stated that adjusted EPS increased from 49 cents to 82 cents.

The FactSet EPS consensus was 85 cents.

Do not miss it: GE Earnings: Wall Street analysts have lowered Beatbear, but investor expectations are now “slightly rising.”

Revenues were down 3.5% to $ 20.30 billion, just below FactSet’s consensus of $ 21.31 billion, with three of the four business segments reporting a decline in revenues.

Industrial free cash flow, which was the focus of attention this quarter, fell from $ 4.39 billion to $ 3.71 billion, surpassing FactSet’s consensus of $ 3.06 billion.

Within GE’s business segment:

  • Airline revenues increased 4.0% to $ 6.08 billion.

  • Electricity revenue fell 13% to $ 4.66 billion.

  • Healthcare revenues fell 4.1% to $ 4.63 billion.

  • Renewable energy was down 5.6% to $ 4.19 billion.

Going forward, GE expects adjusted EPS in 2022 to rise from $ 2.80 to $ 3.50, below the current FactSet consensus of $ 4.00, and industrial free cash flow from $ 5.5 billion to $ 6.5 billion. Surrounding the $ 5.16 billion forecast.

SPDR Industrial Select Sector Exchange Traded Funds Fall 8.0% Equities In The Last Three Months Until Monday
XLI,
+ 0.57%

S & P 500 index down 3.1%
SPX,
+ 0.28%

It decreased by 3.4%.

GE’s share price fell and full-year profit outlook was lower than expected due to shy earnings while the FCF was above

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-78AB-6F793DA9EA17%7D&siteid=rss&rss=1 GE’s share price fell and full-year profit outlook was lower than expected due to shy earnings while the FCF was above

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