General Electric Q3 Adj. Organic Profit Excl. Renewable Energy Reserves Rises; Revenue Growth At 7%

General Electric Company (GE) reported third-quarter adjusted profit margin of 5.8%, down 190 bps organically from prior year. Excluding Renewable Energy higher warranty and related reserves of $0.5 billion, adjusted profit margin was 8.5%, up 80 bps organically. Adjusted revenues were up 7% organically with a decline in organic orders of 7%.

GE Chairman and CEO and GE Aerospace CEO Lawrence Culp, Jr. said, "Our team is delivering, with strong Aerospace performance in the third quarter, fueled by the improving commercial backdrop and our progress managing operations and the supply chain environment. We are building broad-based momentum with solid revenue and free cash flow results, as well as services growth in all businesses."

For full year 2022, GE is maintaining its prior outlook for organic revenue, trending toward the low end of the high-single-digit growth range. The company now expects 125 to 150 basis points of adjusted organic profit margin expansion and an adjusted earnings per share range of $2.40 to $2.80, primarily driven by the third quarter Renewable Energy warranty and related reserves. The company estimates free cash flow of approximately $4.5 billion.

GE noted that its planned spin-offs remain on track with GE HealthCare ready to go in the first week of January.

GE reported third-quarter adjusted profit per share of $0.35 compared to $0.53, prior year. Adjusted earnings per share excluding Renewable Energy reserves was $0.75 compared to $0.53.

On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $0.46, for the quarter. Analysts' estimates typically exclude special items.

Continuing loss was $150 million or $0.14 per share compared to profit of $593 million or $0.54 per share, prior year.

Total revenue was $19.1 billion, an increase of 3%. Adjusted revenues were $18.4 billion, an increase of 7% organically. Analysts on average had estimated $18.62 billion in revenue. Total orders were $20.0 billion, down 9%.

Shares of General Electric are up 2% in pre-market trade on Tuesday.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
United Airlines and Archer Aviation Inc. announced plans to launch the first commercial electric air taxi route in Chicago, between O'Hare International Airport or ORD and Vertiport Chicago. As part of their urban air mobility or UAM network buildout, both companies will utilize Archer's electric vertical takeoff and landing or eVTOL aircraft in the new route. Fort Wayne, Indiana-based Perfection Bakeries D/B/A Aunt Millie's is recalling 8 ct. packages of Our Family White Hot Dog Buns citing the possible presence of undeclared sesame, a known allergen, the U.S. Food and Drug Administration said. The product comes in a printed plastic package marked with "Our Family Hot Dog Buns 8 ct." on the top and has a blue twist tie. Parsippany, New Jersey -based Ascend Laboratories LLC. is recalling Dabigatran Etcxilate capsules citing the detection of N-Nitrosodimethylamine or NDMA impurity, a probable human carcinogen, the U.S. Food and Drug Administration said. The product is used as an oral anticoagulant to lower the risk of stroke and blood clots.
Follow RTT