General Electric revenues rise 15 percent

General Electric on January 23 reported a 0.9% per cent rise in its December quarter profit margin (GAAP) as earnings from total orders rose.

The group registered a profit margin of 10.3% and an adjusted profit margin of 9.6%.

Total orders came in at $21.7 bn and rose by 8%.

Consolidated revenue increased to $19.4 bn, or by 15%, while adjusted revenues for the quarter grew to $18.5 or by 13%.

The continuing EPS (GAAP) was at $1.44 in the quarter, the company said in a statement, while adjusted EPS rose $0.37 to $1.03.

Cash from operative activities (GAAP) stood at $3.2 bn and free cash flow was at $3.0 bn.

The shares of the company were trading at $126.83 in pre-market trading on Tuesday, down 3.4% approximately 1 minute before the results were released, given the uncertainty around GE’s plans for the corporate division.

Full-year results

For the full year, orders were registered at  $79.2 bn and were up by 25%.

Consolidated revenues increased to $68 bn, rising 17%, while profit margin was at 15.0% which rose 1.64%.

Guidance 2024

In its guidance, GE has elected to split into two companies by early April 2024, i.e. GE Vernova which will operate in the power generation space, and GE Aerospace to manage the aviation business.

Sales guidance was robust although Q1 is often the most sluggish quarter, while it anticipates a combined EPS of ‘between 60 and 65 cents’ and strong revenue growth in the high single digits.

In terms of free cash flow, GE Vernova and GE Aerospace are expected to generate approximately $900 million and “greater than $5 billion”, respectively.