General Electric raised full-year guidance.
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General Electric
posted strong third-quarter earnings as it prepares to break into two companies.
GE
(ticker: GE) on Tuesday reported earnings per share of 82 cents. Wall Street was looking for 56 cents.
The company raised full-year earnings guidance to a range of $2.55 to $2.65 a share, up from prior guidance of $2.10 to $2.30.
Timing for the planned spinoff of GE’s renewable power and energy generation businesses is expected to be completed in the second quarter of 2024.
GE stock was up 2.9% shortly after its results were released.
S&P 500
and
Dow Jones Industrial Average
futures were up 0.5% and 0.3%, respectively.
This is breaking news. Below is a preview of GE’s earnings report.
GE is slated to announce third-quarter earnings Tuesday, and with the stock going strong, investors will need good news to keep it moving higher.
Wall Street is looking for GE (ticker: GE) to post earnings per share of 56 cents from sales of $15.5 billion.
In the second quarter, GE reported EPS of 68 cents from sales of $15.9 billion. Wall Street was looking for 46 cents a share. It was the company’s third consecutive earnings beat. GE also increased full-year EPS guidance to a range of $2.10 to $2.30 from a prior range of $1.70 to $2. The forecasted 2023 free cash flow was raised to about $4.4 billion from $3.8 billion.
The stock rose 6.3% following second-quarter earnings.
Through Monday trading, shares were up more than 85% over the past 12 months. The S&P 500 and Dow were up closer to 10% and 5%, respectively.
“We expect GE to boost its 2023 EPS guidance range, moving from a range of $2.10 to $2.30 to $2.25 to $2.35,” wrote RBC analyst Deane Dray in a preview report. “This compares to our estimate of $2.25 and consensus of $2.35.”
At $2.35 a share, Wall Street is a nickel above the high end of company guidance.
Along with a guidance boost, investors will be looking for an update about the coming spin-off of GE Vernova, GE’s renewable power and energy generation businesses. That is slated to happen early in 2024. GE announced some leadership appointments in late August.
After the Vernova spin, GE will become GE Aerospace, a dominant maker of aircraft engines. Investors will also be looking for an update on the health of commercial aviation—and if rising interest rates are hurting demand for items that are ordered years in advance, such as jet engines and power turbines.
Management will host a conference call at 7:30 a.m. Eastern time to discuss results.
Write to Al Root at [email protected]
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