General Electric shares slide on bid, Labor hits 2022 earnings

Updated 12:01 a.m. EST

General Electric (GE) – Get the General Electric company report Shares extended their decline on Friday after the industry group said it expected supply chain and cost pressures to last at least until the second half of the year.

GE said that although the pressures were included in the group’s overall earnings forecast, released late last month, “the scale of these challenges likely presents pressure on overall growth, earnings and cash flow. Free cash flow in the first quarter and first half, beyond typical seasonality.”

GE had forecast on January 25 that it would see free cash flow in the range of $5.5 billion to $6.5 billion – up from $2.6 billion in 2021 – a figure that will rise to 7 billion in 2023. Adjusted earnings were pegged in the region of $2.80 to $3.50 per share – well below Street’s consensus forecast of $4.00 per share, although that figure is based on an outdated report format.

“While we are seeing progress on our strategic priorities, we continue to see supply chain pressure across most of our businesses as material and labor availability and inflation affect healthcare, renewable energy and aviation,” GE said in a Securities and Exchange Commission filing. “While varied by business, we expect these challenges to persist through at least the first half of the year.”

General Electric shares were down 5.8% late in the morning to change hands at $92.82 apiece.

General Electric said non-GAAP adjusted earnings for the three months ending December were pegged at 92 cents per share, up 48% from the same period last year and 7 cents ahead of forecasts. Street Consensus Forecast.

The group’s revenue, General Electric said, fell 7.4% to $20.303 billion, well below analysts’ estimates of a total of $21.48 billion.

Our dramatic debt reduction means we can further step up our efforts to strengthen our operations and play on the offensive, enabling us to generate between $5.5 billion and $6.5 billion of free cash flow in 2022 and more than $7 billion in 2023,” CEO Larry Culp told investors in late January. .

Comments are closed.