“We continue to trend toward the low end of our 2022 outlook on all metrics,” said CEO Larry Culp after a surprisingly solid second quarter.
General Electric (GE) – Get General Electric Company Report posted stronger-than-expected second quarter earnings Tuesday, but cautioned that the current macro environment meant the industrial group is ‘trending toward the low end’ of its prior full year profit forecasts.
General Electric said adjusted non-GAAP earnings for the three months ending in March were pegged at 78 cents per share, a figure that was 95% higher than last year and well ahead of the Street consensus forecast of 38 cents per share. Group revenues, General Electric said, rose 1.75% from last year to %18.6 billion, well ahead of analysts’ estimates of a $17.6 billion tally.
GE confirmed its 2022 forecasts, which it first published in January and reiterated last month saying it expects adjusted earnings in the region of $2.80 to $3.50 per share for the full year — albeit at the lower end — while cutting around $1 billion from its free cash flow forecast, taking it to between $4.5 billion to $5.5 billion.
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“We are improving delivery, price, and cost performance via lean and decentralization. Notwithstanding this progress, much is still uncertain about the external pressures companies are facing at this moment. 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.” said CEO Larry Culp.
“We’re building meaningfully stronger businesses as we focus on serving our customers and investing through these constraints,” he added. “We are on track and confident in our plans to form three independent companies positioned to create long-term value.”
GE shares were marked 3.15% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $70.50 each.