General Electric Shares Soar On Q2 Beat With Aerospace Segment As Key Driver

General Electric Shares Soar On Q2 Beat With Aerospace Segment As Key Driver
  • General Electric Co GE reported second-quarter FY22 adjusted revenue of $17.9 billion, an increase of 2% year-over-year, and GAAP revenues of $18.6 billion, up 2% Y/Y, above the consensus of $17.60 billion.
  • Total orders increased by 2% Y/Y to $18.7 billion and +4% on an organic basis.
  • Adjusted EPS was $0.78, above the consensus of $0.38.
  • Total company adjusted profit increased by 81% Y/Y to $1.66 billion, and margin expanded by 400 bps to 9.3%.
  • GE Aerospace revenue increased by 27% Y/Y to $6.13 billion, orders increased by 26% Y/Y to $6.92 billion, and segment profit margin expanded 1,510 bps to 18.7%.
  • Healthcare revenue increased 1% Y/Y to $4.52 billion, orders declined by 1% Y/Y to $4.81 billion, and segment profit margin contracted by 360 bps to 14.4%.
  • Renewable Energy revenue declined by 23% Y/Y to $3.1 billion, orders fell by 3% Y/Y to $3.11 billion, and segment profit margin contracted by 1,110 bps to -13.5%.
  • Power revenue declined by 2% Y/Y to $4.2 billion, orders fell by 16% Y/Y to $4.05 billion, and segment profit margin expanded by 60 bps to 7.6%.
  • GE's cash from operating activities year-to-date was negative $(27) million for the quarter, compared to $(2.99) billion in 2Q21. Free cash flow was at $(718) million.
  • GE repurchased ~4.6 million shares for $0.3 billion under its $3 billion authorization.
  • "We continue to trend toward the low end of our 2022 outlook on all metrics except cash, which is lower due to timing of working capital and Renewable Energy-related orders," commented GE Chairman and CEO H. Lawrence Culp, Jr.
  • GE said it is also on track to create three independent companies.
  • Price Action: GE shares traded higher by 6.49% at $72.79 on the last check Tuesday.
  • Photo Via Company

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