GE Q4 Profit Down 24%, But Tops Estimates

(RTTNews) - Industrial conglomerate General Electric Co. (GE) reported Tuesday a net profit for the fourth quarter that declined 24 percent from last year, which had earnings from discontinued operations. This despite 15 percent revenue growth and improved profit margins. Adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also initiated adjusted earnings guidance for the first quarter, below estimates.

In pre-market activity on the NYSE, GE shares are trading at $128.20, down $3.03 or 2.31 percent.

For the fourth quarter, GE reported net income attributable to common shareowners of $1.59 billion or $1.45 per share, down 24 percent from $2.10 billion or $1.90 per share in the prior-year quarter. Earnings from continuing operations attributable to common shareowners were $1.59 billion or $1.44 per share, down 6 percent from $1.69 billion or $1.53 per share in the year-ago quarter.

Excluding items, adjusted earnings for the quarter were $1.03 per share, compared to last year's $0.66 per share. On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 15 percent to $19.42 billion from $16.83 billion in the same quarter last year. Organic revenue was up 13 percent. Analysts expected revenues of $17.42 billion for the quarter.

Total orders for the quarter grew 8 percent to $21.7 billion and increased 7 percent organically.

Profit margin for the quarter improved 90 basis points to 10.3 percent.

GE Aerospace revenues improved 12 percent to $8.52 billion on a reported and organic basis, led by Commercial Engines and Services. Orders of $10.62 billion increased 10 percent on a reported and organic basis.

Revenues from Renewable Energy, part of GE Vemova, grew 23 percent to $4.21 billion and up 19 percent organically. Orders grew 1 percent to $5.07 billion on a reported and organic basis.

Revenues from Power, part of GE Vemova, were up 15 percent to $5.79 billion from last year and 12 percent organically. Orders of $5.73 billion increased 5 percent and 4 percent organically.

Looking ahead to the first quarter of fiscal 2024, the company now projects adjusted earnings in a range of $0.60 to $0.65 per share on high-single-digit revenue growth.

The Street is currently looking for earnings of $0.72 per share on revenue growth of 5.9 percent to $15.35 billion for the quarter.

For fiscal 2024, the company's guidance reflects GE Vernova and GE Aerospace operating independently, incorporating standalone in early April and other costs that each will incur separately.

GE Vernova expects to deliver revenue of $34 billion to $35 billion. GE Aerospace expects adjusted revenue to grow low double digits or more and operating profit of $6.0 billion to $6.5 billion.

GE Chairman and CEO and GE Aerospace CEO Lawrence Culp, Jr. said, "2024 will be a momentous year as GE Aerospace and GE Vernova plan to launch as independent public companies in early April. Both companies will carry forward GE's commitment to innovation and continuous improvement, with even sharper focus on their vital, growing industries."

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