Summary
General Electric (GE) reported a strong first quarter of 2023, marked by a significant increase in total revenues to $14.5 billion, up 14% year-over-year, primarily driven by robust performance in the Aerospace and Power segments. The company's net earnings attributable to GE common shareholders surged to $7.36 billion, a substantial improvement from a net loss of $1.19 billion in the prior year's quarter. This turnaround was largely influenced by a significant gain on equity securities, notably from the GE HealthCare investment, and the non-recurrence of prior year charges. Operationally, GE Aerospace demonstrated strong growth, with revenues up 25% driven by commercial engine and services demand, reflecting a recovery in air travel. While Renewable Energy segment revenues saw a slight decline, segment losses narrowed due to improved performance in Grid Solutions and cost reduction initiatives. The Power segment also experienced revenue growth and improved profitability, supported by Gas Power services. The company continues to navigate inflationary pressures and supply chain challenges by implementing cost productivity measures and pricing adjustments. GE also made progress on its strategic plan to separate into three independent companies, with the spin-off of GE HealthCare completed in January 2023.
Financial Highlights
46 data points| Revenue | $7.84B |
| Cost of Revenue | $5.00B |
| Gross Profit | $2.84B |
| R&D Expenses | $431.00M |
| SG&A Expenses | $2.14B |
| Operating Expenses | $14.07B |
| Operating Income | $6.25B |
| Net Income | $7.51B |
| EPS (Basic) | $6.76 |
| EPS (Diluted) | $6.71 |
| Shares Outstanding (Basic) | 1.09B |
| Shares Outstanding (Diluted) | 1.10B |
Key Highlights
- 1Total revenues increased by 14% to $14.5 billion, driven by Aerospace and Power segments.
- 2Net earnings attributable to GE common shareholders were $7.36 billion, a significant turnaround from a loss of $1.19 billion in Q1 2022, heavily influenced by gains on equity securities.
- 3Aerospace segment revenues grew by 25% to $7.0 billion, with commercial air travel recovery as a key driver.
- 4Renewable Energy segment experienced a 1% revenue decrease but narrowed its segment losses.
- 5Power segment revenues increased by 9% to $3.8 billion, with strong performance in Gas Power services.
- 6Free Cash Flow (FCF) improved significantly to $0.1 billion from $(1.2) billion in Q1 2022.
- 7The spin-off of GE HealthCare was completed on January 3, 2023, with GE retaining a 19.9% stake.