GE Earnings: What Happened with GE

1 year ago 167

GE bushed connected net and revenue, missed connected aviation revenue

GE Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Predictions
Adjusted Earnings Per Share Beat $0.05 $0.03
Revenue (billions) Beat $18.3 $18.0
Aviation Revenue (billions) Miss $4.8 $5.2

Source: Predictions based connected analysts' statement from Visible Alpha

Key Takeaways

  • Aviation gross climbed twelvemonth implicit twelvemonth but fell abbreviated of expert expectations.
  • Slow betterment successful aviation gross could bespeak a little robust wide betterment from the COVID-19 pandemic.
  • GE continues an assertive program to solidify its fiscal position, with gross indebtedness simplification of much than $70 cardinal since the extremity of FY 2018.

GE Financial Results: Analysis

General Electric Company (GE) reported wide beardown earnings for Q2 FY 2021. Adjusted earnings per share (EPS) and gross some exceeded expert expectations for the quarter. Adjusted EPS of $0.05 marked the astir important reversal twelvemonth implicit twelvemonth (YOY), compared with adjusted losses of -$0.14 for Q2 FY 2020 astatine the tallness of the COVID-19 pandemic. Revenue climbed YOY for the archetypal clip successful 3 years to $18.3 billion, besides beating expert predictions. Performance was driven successful portion by betterment successful full orders, which climbed by astir 33% YOY, and successful the company's Healthcare business.

GE's Key Metric: Aviation Revenue

GE's aviation conception is considered a cardinal wide metric for the company, due to the fact that it is intimately tied to the hose industry, which has begun to retrieve pursuing terrible disruption earlier successful the COVID-19 pandemic. Signs of a beardown betterment successful the company's aviation concern could constituent to robust wide betterment from the pandemic. Aviation revenues accrued by 10.4% YOY to $4.8 billion. This is the archetypal YOY betterment successful this country since Q4 FY 2019. However, it falls abbreviated of expert predictions of 19.0% YOY maturation to $5.2 billion.

GE's aviation concern maturation was driven by commercialized engines and commercialized services maturation YOY, portion subject orders decreased implicit the aforesaid play arsenic a effect of supply chain challenges and timing. That GE missed expert predictions successful aviation gross whitethorn suggest that betterment has been little robust than predicted oregon that it is taking spot much slowly.

GE's Guidance and Stock Performance

GE accrued its wide 2021 outlook for concern free currency flow, from a erstwhile scope of $2.5-$4.5 cardinal up to $3.5-$5.0 billion. The institution reiterated its full institution outlook for adjusted EPS of $0.15 to $0.25 and for concern revenues to turn successful the low-single-digit range.

Shares of GE dipped by nether 1.0% and past recovered slightly, dropping wide by nether 0.3% successful after-hours trading instantly pursuing the merchandise of the net report. The company's banal has skyrocketed by astir 93.3% implicit the past year.

Next Earnings Report

GE's adjacent net study is estimated to beryllium released connected Oct. 15, 2021.

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  2. General Electric Co. "GE ANNOUNCES SECOND QUARTER 2021 RESULTS," Page 3. Accessed July 27, 2021.

  3. General Electric Co. "GE ANNOUNCES SECOND QUARTER 2021 RESULTS," Page 5. Accessed July 27, 2021.

  4. MarketScreener. "GENERAL ELECTRIC COMPANY (GE)." Accessed July 26, 2021

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