GE Posts Smaller Than Expected Q3 Earnings, Plans Restructuring In Vernova Unit - GE Aero (NYSE:GE)

General Electric Co GE reported Q3 FY22 adjusted sales of $18.4 billion, +7% organically, and GAAP total revenues of $19.1 billion, against the consensus of $18.72 billion.
Total orders decreased by 9% Y/Y to $20 billion and down 7% on an organic basis.
Adjusted EPS was $0.35, down from $0.53 a year ago and the consensus of $0.50.
The adjusted profit declined 19%Y/Y to $1.06 billion, and the margin compressed from 7.4% to 5.8%.
GE's spin-off of its HealthCare unit is expected to deliver $0.45 billion in annualized savings with approximately $0.7 billion in restructuring expenses.
Additionally, GE plans to initiate a restructuring program across its GE Vernova businesses, primarily in Renewable Energy, which is expected to deliver $0.5 billion in annualized savings with approximately $0.6 billion in restructuring expenses.
Earlier this month, GE announced laying off the onshore wind unit employees. Onshore wind is the largest of GE's renewable businesses. The cuts are expected to affect 20% of the onshore wind unit's workforce in the U.S.
Guidance: GE is maintaining its prior outlook for organic revenue, trending toward the low end of the high-single-digit growth range.
The company now expects 125-150 basis points of adjusted organic profit margin expansion and an adjusted EPS of $2.40-$2.80 vs. the consensus of $2.63, primarily driven by Q3 Renewable Energy warranty and related reserves.
GE also expects a free cash flow of approximately $4.5 billion.
Price Action: GE shares are up 3.46% at $75.90 during the premarket session on the last check Tuesday.
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