GE stock slides after Q1 earnings, warns of inflation pressure

  • General electric company GE reported FY22 first-quarter adjusted revenue of $16.3 billion, flat year-over-year, and organic revenue of $16.43 billion, up 1% year-on-year year-on-year. Total GAAP revenue was flat at $17.04 billion.
  • Total orders increased 11% year-over-year to $18.9 billion and +13% on an organic basis.
  • Adjusted EPS was $0.24, an 85% year-over-year increase, above the consensus of $0.19.
  • The company’s adjusted total profit increased 18.6% year-on-year to $946 million, and margin increased 92 basis points to 5.8%.
  • Aviation revenue increased 12% year-on-year to $5.6 billion, orders increased 31% year-on-year to $7.21 billion and segment profit margin increased 340 points base at 16.2%.
  • Healthcare revenue increased 1% yoy to $4.36 billion, orders increased 8% yoy to $4.81 billion and segment profit margin contracted by 390 basis points to 12.3%.
  • Renewables revenue fell 12% year-on-year to $2.87 billion, orders fell 21% year-on-year to $2.79 billion, and the segment’s profit margin narrowed. contracted by 790 basis points to -15.1%.
  • Electricity revenue decreased 11% year-on-year to $3.5 billion, orders increased 14% year-on-year to $4.16 billion and segment profit margin increased by 400 basis points to 1.8%.
  • GE’s cash from operating activities was negative ($535) million for the quarter, compared to ($2.64) billion in 1Q21. Free cash flow was $(880) million, up 174% year-on-year.
  • “We maintain the outlook range we shared in January, but as we continue to deal with inflation and other evolving pressures, we are currently trending down the range. Importantly, we remain on the right path to launch three independent, best-in-class companies with leadership positions in critical growth industries, well positioned to create long-term value,” commented GE Chairman and CEO H. Lawrence. Culp, Jr.
  • Related: GE reiterates FY22 outlook at its 2022 Investor Day
  • FY22 Outlook reaffirmed: GE expects organic revenue to grow in the high single digit range and adjusted organic profit margin to increase by more than 150 basis points.
  • He expects adjusted EPS of $2.80 to $3.50; and Free cash flow of $5.5 billion – $6.5 billion.
  • Price action: Shares of GE traded down 8.86% to $81.92 when last checked on Tuesday.
  • Photo Via Wikimedia Commons

Comments are closed.