Summary
General Electric (GE) reported mixed results for the third quarter of 2022. Total revenues increased by 3% to $19.1 billion, primarily driven by growth in the Aerospace and HealthCare segments. However, the company reported a net loss from continuing operations of $153 million, or $(0.14) per share. This loss was significantly impacted by a $0.5 billion net loss on the value of equity securities and decreases in segment profit. Operationally, the Aerospace segment showed strong recovery, with revenues up 24% and profit up 52%, benefiting from increased air traffic and services. HealthCare also saw revenue growth of 6%, albeit with a slight decrease in profit margin. The Renewable Energy segment continued to face significant headwinds, with revenues down 15% and substantial losses, impacted by project delays, cost inflation, and warranty reserves. The Power segment also experienced revenue declines of 12% and reduced profit margins. Free cash flow for the nine months ended September 30, 2022, was $0.5 billion, a significant improvement from $(1.8) billion in the prior year, indicating progress in cash generation despite operational challenges. The company is actively managing supply chain pressures and inflation, though these factors continue to impact margins.
Financial Highlights
47 data points| Revenue | $14.47B |
| Cost of Revenue | $11.53B |
| Gross Profit | $2.94B |
| R&D Expenses | $426.00M |
| SG&A Expenses | $1.97B |
| Operating Expenses | $14.88B |
| Operating Income | -$2.60B |
| Net Income | $161.00M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 1.09B |
| Shares Outstanding (Diluted) | 1.09B |
Key Highlights
- 1Total revenues increased 3% to $19.1 billion, driven by strong performance in Aerospace and HealthCare.
- 2Aerospace segment revenues surged 24% and profit increased 52%, reflecting market recovery and demand for services.
- 3Renewable Energy segment experienced significant challenges, with revenues down 15% and increased losses due to cost inflation and warranty issues.
- 4Net loss from continuing operations was $(0.15) billion, impacted by a $(0.5) billion loss on equity securities.
- 5Free Cash Flow (FCF) for the nine months improved to $0.5 billion from $(1.8) billion in the prior year.
- 6Remaining Performance Obligation (RPO) increased slightly to $240.8 billion, providing good visibility into future revenues.
- 7Company is progressing with its plan to separate into three independent companies: GE Aerospace, GE HealthCare, and GE Vernova.