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Shares of General Electric Co. surged Tuesday, after the aerospace, power and renewable energy company’s third-quarter results beat expectations by wide margins, amid “robust demand,” largely in commercial engines and services.
Net income rose to $258 million, or 24 cents a share, from $88 million, or 8 cents a share, in the same period a year ago. The results include income for discontinued operations of $173 million.
Excluding nonrecurring items, adjusted per-share earnings came to 82 cents, well ahead of the 56-cent FactSet consensus.
The stock
GE,
jumped 5.1% in premarket trading, enough to make it the S&P 500 index’s
SPX
second-best performer ahead of the open.
Revenue rose 19.9% to $17.35 billion, well ahead of the $15.46 billion FactSet consensus. The prior-year result includes revenue from GE’s healthcare business, which was spun off as GE Healthcare Technologies Inc.
GEHC,
at the start of 2023.
Within GE’s business segments, GE Aerospace revenue grew 25.4% to $8.41 billion, to beat the FactSet consensus of $7.96 billion, and GE Vernova revenue, which includes results from renewable energy and power, rose 14.1% to $8.13 billion, above expectations of $7.41 billion.
The company said total orders rose 19% to $17.9 billion, including 34% growth in GE Aerospace orders and 3.4% growth in GE Vernova orders to $8.18 billion.
Free cash flow more than doubled to $1.67 billion from $697 million a year ago, and beat FactSet’s average analyst estimate of $1.15 billion.
“At GE Aerospace, we continue to experience rapid growth driven by robust demand and solid execution, largely in Commercial Engines and Services,” Chief Executive Lawrence Culp Jr. said in a statement. “At GE Vernova, our Grid and now Onshore Wind businesses were both profitable this quarter and we expect their performance to continue to improve. With our two largest Renewable Energy businesses delivering and Power’s continued strength, we remain highly confident in GE Vernova’s spinoff next year.”
The company raised its full-year guidance and now expects adjusted EPS of $2.55 to $2.65, up from July guidance of $2.10 to $2.30.
Separately, GE said the spinoff of GE Vernova is expected to occur at the beginning of the second quarter of 2024. After the spinoff, GE Vernova will list on the New York Stock Exchange under the ticker symbol “GEV.”
GE Aerospace will continue to list on the NYSE under the current ticker of “GE.”
GE’s stock has gained 63% in the year to date, while the S&P 500
SPX,
has gained 9.7%.
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