General Electric Shares Soar On Q2 Beat With Aerospace Segment As Key Driver

General Electric Co GE reported second-quarter FY22 adjusted revenue of $17.9 billion, an increase of 2% year-over-year, and GAAP revenues of $18.6 billion, up 2% Y/Y, above the consensus of $17.60 billion.
Total orders increased by 2% Y/Y to $18.7 billion and +4% on an organic basis.
Adjusted EPS was $0.78, above the consensus of $0.38.
Total company adjusted profit increased by 81% Y/Y to $1.66 billion, and margin expanded by 400 bps to 9.3%.
GE Aerospace revenue increased by 27% Y/Y to $6.13 billion, orders increased by 26% Y/Y to $6.92 billion, and segment profit margin expanded 1,510 bps to 18.7%.
Healthcare revenue increased 1% Y/Y to $4.52 billion, orders declined by 1% Y/Y to $4.81 billion, and segment profit margin contracted by 360 bps to 14.4%.
Renewable Energy revenue declined by 23% Y/Y to $3.1 billion, orders fell by 3% Y/Y to $3.11 billion, and segment profit margin contracted by 1,110 bps to -13.5%.
Power revenue declined by 2% Y/Y to $4.2 billion, orders fell by 16% Y/Y to $4.05 billion, and segment profit margin expanded by 60 bps to 7.6%.
GE's cash from operating activities year-to-date was negative $(27) million for the quarter, compared to $(2.99) billion in 2Q21. Free cash flow was at $(718) million.
GE repurchased ~4.6 million shares for $0.3 billion under its $3 billion authorization.
"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," commented GE Chairman and CEO H. Lawrence Culp, Jr.
GE said it is also on track to create three independent companies.
Price Action: GE shares traded higher by 6.49% at $72.79 on the last check Tuesday.
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