82
*The year-over-year comparisons are adjusted to account for GE Health, which spun off in Jan. 2023.
Key Takeaways
- GE reported better-than-expected fourth-quarter earnings.
- Revenue grew 15% to $19.42 billion, hurt a little by a slowdown in aerospace revenue growth compared to previous quarters.
- GE’s guidance for the first quarter of 2024 said the company “expects to deliver high-single-digit revenue growth” with earnings per share between $0.60 and $0.65.
- The company is working to spin off its renewables company by early April.
Shares of General Electric Co. ( GE ) fell during pre-market trading and Tuesday morning as 2024 guidance fell short of investor expectations, even as fourth-quarter earnings beat estimates.
The company’s 2024 guidance was lackluster: GE said it “expects to deliver high-single-digit revenue growth” and adjusted earnings per share of $0.60 to $0.65 in the first quarter, where analysts had expected $0.76 per share according to an analyst consensus compiled by Visible Alpha. Fourth-quarter revenue of $19.4 billion beating expectations for $17.8 billion wasn’t enough to prevent a downturn in share prices, which were down 0.78% midday.
The 2024 guidance reflects the structural changes the company is making. In early April, the company is planning to spin off its renewables vertical Verona into a separate public company.
The company reported $1.03 per diluted share, a 56% jump compared to the year-ago quarter, surpassing analyst expectations $0.88. Revenue grew to $19.42 billion from $16.82 billion the same period in the prior year.
| Q4 2023 | Analyst Estimates for Q4 2023 | Q4 2022 | Year-over-year % change | |
|---|---|---|---|---|
| Revenue | $19.42 billion | $17.8 billion | $16.82 billion | 15% |
| Diluted Earnings Per Share | $1.03 | $0.88 | $0.66 | 56% |
| Net Income | $1.77 billion | $915.2 million | $1.37 billion | 30% |
“In 2023, our teams delivered an excellent year, more than tripling earnings and generating almost 70% more free cash flow,” GE CEO H. Lawrence Culp, Jr. said in a statement.
Key Metric
GE’s Aerospace vertical has come into focus as the spinoff of the renewables division draws closer. The past quarter saw revenue from the aerospace business lose a little of the momentum it had gained throughout the year, though revenue still grew 12% from the previous year.