General Electric Stock Gains After Mixed Q3 Results, Raises FY21 Adjusted EPS Outlook

General Electric Co GE reported a third-quarter FY21 revenue decline of 1% year-over-year to $18.43 billion, missing the consensus of $19.25 billion.
Total orders increased by 42% Y/Y to $22.1 Billion.
Adjusted GE industrial profit margin expanded by 270 bps to 7.5% for the quarter.
Adjusted EPS improved to $0.57 from $0.38 in 3Q20, beating the consensus of $0.43.
Aviation revenue increased by 10% Y/Y to $5.39 billion, orders increased by 69% Y/Y to $6.9 billion, and segment profit margin expanded 860 bps to 15.7%.
Healthcare revenue declined 5% Y/Y to $4.34 billion, orders increased by 21% Y/Y to $4.97 billion, and segment profit margin was flat at 16.2%.
Renewable Energy revenue declined by 7% Y/Y to $4.21 billion, orders increased by 65% Y/Y to $6.59 billion, and segment profit margin contracted by 250 bps to -3.6%.
Power revenue was flat at $4.03 billion, Orders increased by 8% Y/Y to $3.67 billion, and segment profit margin expanded by 140 bps to 5.1%.
GE's industrial cash from operating activities for the quarter totaled $1.7 billion, compared to $90 million reported in 3Q20. GE Industrial Free Cash Flows was $1.73 billion.
FY21 Outlook: GE expects Industrial organic revenue growth to be approximately flat (prior view Low single-digit growth). Adjusted Industrial profit margin expansion of 350+ basis points (prior 250+ bps expansion).
It expects adjusted EPS to $1.80–$2.10 (prior $1.20–$2.00) vs. consensus of $1.94. GE Industrial free cash flow of $3.75 billion –$4.75 billion (prior $3.5 billion–$5 billion).
GE expects revenue growth, margin expansion, and higher free cash flow in 2022.
Price Action: GE shares are trading higher by 1.28% at $106.65 during the premarket session on Tuesday.

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