GE Stock Slides As Supply Chain Headwinds Masks Progress

  • General Electric Co GE issued an investor newsletter, mentioning continued supply chain pressure across most of its businesses as material and labor availability and inflation affect Healthcare, Renewable Energy, and Aviation.
  • GE expects these challenges to persist at least through the first half of the year.
  • GE said it had included such pressures in its annual guidance. As announced earlier, GE's outlook calls for organic revenues to grow in the high-single-digit range, adjusted organic profit margin to expand by 150+ basis points, Adjusted EPS of $2.80 - $3.50, and Free cash flow of $5.5 billion - $6.5 billion.
  • However, the magnitude of these challenges likely present pressure to overall growth, profit, and FCF through Q1 and 1H, beyond typically expected seasonality.
  • RelatedGE Q4 Revenue Misses Street View; Expects Revenue Growth In FY22
  • GE said it is focused on mitigating the pressures through pricing and cost actions and with lean mindset. In Aviation, lean is improving first-time yields.
  • GE expects supply chain headwinds may continue to partially mask the significant progress across its businesses.
  • Also ReadAnalysts Cut General Electric Price Target Post Q4 Results
  • Price Action: GE shares are trading lower by 4.68% at $93.85 on the last check Friday.

Posted In: BriefsNewsGuidanceMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.