GE Turns To Profit In Q4, Beats Market; Sees Growth In FY23; Stock Up In Pre Market

Industrial conglomerate General Electric Co. (GE) reported Tuesday a profit in its fourth quarter, above market estimates, compared to last year's loss, benefited by higher revenues. Looking ahead, the company projects higher adjusted earnings and organic revenues in fiscal 2023.

In pre-market activity on the NYSE, GE shares were gaining around 3 percent to trade at $81.84.

The results included the operations of GE HealthCare Technologies Inc., which was separated in early January in a spin-off.

In the fourth quarter, net earnings attributable to GE shareholders were $2.13 billion, compared to last year's loss of $3.90 billion. Earnings per share were $1.93, compared to loss of $3.55 a year ago.

Continuing earnings per share were $1.99, while prior year's loss was $3.24 per share.

In the quarter, adjusted earnings per share were $1.24, compared to $0.82 last year.

On average, 17 analysts polled by Thomson Reuters expected earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues grew 7 percent to $21.79 billion from prior year's $20.30 billion. Organic revenues grew 11 percent. Analysts estimated revenues of $21.59 billion for the quarter.

For fiscal 2023, GE, excluding GE HealthCare, expects adjusted earnings per share of $1.60 to $2.00 on organic revenue growth in high single digits from the previous year.

In fiscal 2022, GE's loss excluding GE HealthCare on a reported basis was $1.11 per share, and adjusted earnings were $0.77 per share. Revenue growth was 3 percent on a reported basis, and 6 percent organically.

Including GE HealthCare, the prior year's net loss was $0.05 per share, continuing earnings were $0.53 per share, and adjusted earnings were $2.62 per share, on total revenues of $76.56 billion.

In fiscal 2023, GE Aerospace expects organic revenue to grow mid-to-high teens, with operating profit of $5.3 billion to $5.7 billion.

GE Vernova expects organic revenue to grow low-to-mid single digits, with operating loss of $0.6 billion to $0.2 billion.

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