General Electric (GE.US) Q4 earnings per share of $1.24 beat expectations, strong free cash flow provider Zhitong Finance

© Reuters General Electric (GE.US) Q4 earnings of $1.24 per share beat expectations on strong free cash flow

Zhitong Finance APP has learned that General Electric (GE.US) has released the fourth quarter and annual performance report for 2022, showing that as of December 31, 2022, total adjusted revenue in the fourth quarter was 21 billion US dollars, up 11% Earnings per share were $1.24, beating consensus estimates of $1.16. This performance includes GE HealthCare Technologies operations, which began on January 3, 2023. Its CEO expects high single-digit revenue growth in 2023 and strong free cash flow. After the announcement of the results, General Electric’s stock price turned from a decline to an increase in the pre-market trading session, and as of press time, it rose a little US$0.21 or 0.26%.

In particular, orders in the fourth quarter totaled US$25.4 billion, an increase of 15% year on year; organic orders increased by 18% year on year. Total Q4 revenue was US$21.8 billion (GAAP), an increase of 7%; adjusted revenue totaled US$21 billion, organic growth of 11%. Q4 operating margin was 10.3% (GAAP), an increase of 2,740 basis points year over year; adjusted operating margin was 10.3%, organic growth of 290 basis points. Earnings per share (GAAP) from continuing operations in Q4 were $1.99, an increase of $5.23 year over year; adjusted earnings per share were $1.24, an increase of $0.42 year over year. Cash from operating activities (GAAP) was US$4.6 billion, an increase of US$220 million year over year; free cash flow was US$430 million, an increase of US$600 million year on year.

For the full year, orders totaled US$83 billion, up 4% year-on-year, and organic orders increased 7% year-on-year; total revenue (GAAP) was US$76.6 billion, an increase of 3%; adjusted total revenue was US$73.6 billion, an organic increase of 6%; Operating margin was 1.8% (GAAP), up 680 basis points year over year; adjusted operating margin was 7.9%, up 160 basis points organically; EPS from continuing operations was $0.53 (GAAP), up $3.78 year over year; Earnings per share were US$2.62, up US$0.91 year-on-year; cash from operating activities (GAAP) was US$5.9 billion, an increase of US$5 billion; free cash flow reached US$4.8 billion, an increase of US$2.1 billion.

“2022 marks the beginning of a new era for GE,” said H. Lawrence Culp, Jr., Chairman and CEO of GE. GE ends 2022 with solid revenue and profit growth Profits improved and free cash flow reached $4.8 billion. quarter, GE Aerospace orders and revenue increased more than 20%, and Power achieved double-digit growth rates, both strong results.”

Looking ahead, Culp said GE will continue to focus on driving growth and improving profit and cash flow. High single digit revenue growth is expected in 2023 with strong free cash flow.

UBS analyst Chris Snyder recently said that after General Electric (General Electric) spun off its healthcare business, he lowered his target price on the company’s stock from $98 to $87 and maintained a “buy” rating on the stock . Analysts see positive change in all of GE’s business lines by 2023, and the company’s momentum will also improve in 2024.

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