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GE Slips To Loss In Q4, But Adj. EPS Tops Estimates

generalelectric 012017 25jan22 lt

Industrial conglomerate General Electric Co. (GE) reported Tuesday a net loss for the fourth quarter compared to a profit last year, hurt by steep debt extinguishment costs and lower revenues. However, adjusted earnings per share topped analysts' expectations, while quarterly revenues missed them.

GE reported a net loss attributable to common shareowners for the quarter of $3.90 billion or $3.55 per share, compared to net income of $2.44 billion or $2.20 per share in the prior-year quarter.

Loss from continuing operations attributable to common shareowners was $3.56 billion or $3.24 per share, compared to income from continuing operations of $2.28 billion or $2.05 per share in the year-ago quarter.

Excluding items, adjusted earnings per share for the quarter were $0.92, compared to last year's $0.49. On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.87 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated revenues for the quarter declined 3 percent to $20.30 billion from $21.03 billion in the same quarter last year. Analysts expected revenues of $21.48 billion for the quarter.

GE Industrial organic revenues decreased 3 percent to $19.61 billion. Total orders for the quarter also declined 5 percent to $22.1 billion and decreased 4 percent organically.

Power segment revenues decreased 13 percent to $4.66 billion on a reported basis and were down 10 percent on organic basis.

Renewable Energy segment revenues declined 6 percent to $4.19 billion and down 5 percent organically, mainly due to lower Onshore Wind equipment deliveries and continued project selectivity at Grid.

However, Aviation segment revenues increased 4 percent to $6.08 billion, as commercial services grew significantly from higher shop visit volume.

Healthcare segment revenues were down 4 percent to $4.63 billion, primarily due to the ongoing industry-wide supply shortages

In November 2021, the company announced plans to form three independent, investment-grade, industry-leading companies focused on the growth sectors of aviation, healthcare, and energy.

Looking ahead to fiscal 2022, the company currently projects adjusted earnings in a range of $2.80 to $3.50 per share on organic revenue growth in the high-single-digit range. The Street is currently looking for earnings of $4.01 per share on revenue growth of 5.7 percent to $79.45 billion for the year.

GE expects to return to revenue growth in 2022. The company expects Aviation revenue to increase more than 20 percent in 2022, which is dependent on the continued commercial market recovery, as well as low-to mid-single-digit revenue growth in Healthcare.

The company also said it is looking set to deliver between $5.5 billion and $6.5 billion of free cash flow in 2022 and more than $7 billion in 2023.

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