On the 25th, US General Electric (GE) announced the financial results for the second quarter (April-June), which greatly exceeded market expectations, and raised the outlook for the full year. In addition to the contribution of a recovery in renewable energy orders, increased passenger demand continued to boost demand for jet engines.
Adjusted earnings guidance for 2023 is $2.10-$2.30 per share, up from the previous maximum of $2. It beat the average analyst estimate of $2.05. Free cash flow outlook increased from a maximum of $4.2 billion to a maximum of $4.6 billion.
Since taking office in 2018, Chief Executive Officer Larry Culp has carried out management reforms. He aims to become a pure aerospace company by early next year, and his stock has surged nearly 70% this year.
Free cash flow, which GE investors look to as a measure of profitability, reached $415 million in the second quarter, well above analyst estimates of $153 million.
Orders in the aerospace division surged 37%, and sales also increased significantly. Profit margin improved slightly. This is due to increased deliveries of unprofitable new engines to Boeing and Airbus.
Renewables sales rose 27% on a constant currency and mergers and acquisitions basis on higher wind turbine and power transmission equipment deliveries.
Original title:GE Boosts Outlook on Aerospace Gains, Rebound in Renewables (1)(excerpt)
2023-07-25 14:21:54
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