- General Electric Co GE reported Q3 FY22 adjusted sales of $18.4 billion, +7% organically, and GAAP total revenues of $19.1 billion, against the consensus of $18.72 billion.
- Total orders decreased by 9% Y/Y to $20 billion and down 7% on an organic basis.
- Adjusted EPS was $0.35, down from $0.53 a year ago and the consensus of $0.50.
- The adjusted profit declined 19%Y/Y to $1.06 billion, and the margin compressed from 7.4% to 5.8%.
- GE's spin-off of its HealthCare unit is expected to deliver $0.45 billion in annualized savings with approximately $0.7 billion in restructuring expenses.
- Additionally, GE plans to initiate a restructuring program across its GE Vernova businesses, primarily in Renewable Energy, which is expected to deliver $0.5 billion in annualized savings with approximately $0.6 billion in restructuring expenses.
- Earlier this month, GE announced laying off the onshore wind unit employees. Onshore wind is the largest of GE's renewable businesses. The cuts are expected to affect 20% of the onshore wind unit's workforce in the U.S.
- Guidance: GE is maintaining its prior outlook for organic revenue, trending toward the low end of the high-single-digit growth range.
- The company now expects 125-150 basis points of adjusted organic profit margin expansion and an adjusted EPS of $2.40-$2.80 vs. the consensus of $2.63, primarily driven by Q3 Renewable Energy warranty and related reserves.
- GE also expects a free cash flow of approximately $4.5 billion.
- Price Action: GE shares are up 3.46% at $75.90 during the premarket session on the last check Tuesday.
- Photo Via Company
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