General Electric (GE) -) posted better-than-expected third quarter earnings Tuesday, while boosting its full-year profit and free cash flow forecasts, as the industrial group's core aviation division continues to power both its top and bottom lines.
General Electric said adjusted non-GAAP earnings for the three months ending in September were pegged at 82 cents per share, up 9.3% from last year and well ahead of the Street consensus forecast of 56 cents per share. Group adjusted revenues, General Electric said, rose 18% from last year to $16.3 billion, also topped analysts' estimates of a $15.7 billion tally.
Looking into the final months of the year, GE said it now sees adjusted earnings in the region of $2.55 to $2.65 per share, a 35 cents improvement from the higher end of its prior forecast, with organic sales growth in the 'low teens' range in terms of percentage gain.
GE also lifted its key free-cash flow estimate to a range of between $4.7 billion to $5.1 billion up from its prior forecast of between $4.1 billion to $4.6 billion.
Operating profits for GE Aerospace, its core division, were forecast in the range of $6 billion, up from its prior forecast of between $5.6 billion to $5.9 billion.
GE Vernova will likely report a loss of between $300 million and $100 million, with GE adding the energy business division will likely list as a separate entity by the end of the second quarter of next year.
"GE delivered another quarter of very strong results with double-digit growth in revenue, profit, and cash," said CEO Larry Culp. "At GE Aerospace, we continue to experience rapid growth driven by robust demand and solid execution, largely in Commercial Engines and Services. At GE Vernova, our Grid and now Onshore Wind businesses were both profitable this quarter and we expect their performance to continue to improve. With our two largest Renewable Energy businesses delivering and Power's continued strength, we remain highly confident in GE Vernova's spin-off next year." C
"Based on our year-to-date results and continued momentum in the fourth quarter, GE is raising full-year 2023 guidance," he added. "We're well-positioned to launch GE Aerospace and GE Vernova as independent companies in the beginning of the second quarter. I'm more excited than ever about our path ahead."
General Electric shares were marked 3.7% higher in early Tuesday trading immediately following the earnings release to change hands at $110.56 each, a move that would extend the stock's six-month gain to around 12%.
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