General Electric (NYSE:GE) reported earnings and GE stock price for the third quarter on Tuesday that was lower than analysts had anticipated, and the industrial group also lowered its profit forecast for the full year. Supply chain disruptions and cost pressures continue to cut into the bottom line of the industrial group.
The stock was trading lower before the market opened, but it recovered some of its losses as investors focused on the company’s solid overall sales and a reiteration of its forecast for $4.5 billion in free cash flow for the full year. This compares to the $1.19 billion that was estimated to be generated in the third quarter.
General Electric (NYSE:GE) said that its adjusted non-GAAP earnings for the three months that ended in September were set at 35 cents per share. This result was 38.6% lower than the same period last year and fell 11 cents short of the average projection of 46 cents per share from the financial market. General Electric said that its group revenues increased by 3.6% from the previous year to $19.1 billion, which was marginally ahead of analysts’ projections of a total of $18.62 billion.
GE Stock Price
GE (NYSE:GE) has stated that it expects its adjusted profits for the whole year to fall somewhere in the range of $2.40 to $2.80 per share. This is a decrease from prior projections that ranged between $2.80 to $3.50 per share.
According to CEO Larry Culp, “Our team is delivering, with excellent Aerospace performance in the third quarter,” which was fuelled by the strengthening commercial backdrop as well as our efforts in controlling operations and the supply chain environment. “We are creating broad-based momentum with good revenue and free cash flow outcomes, in addition to the expansion of services across all of our companies,”
“Our planned spin-offs are on schedule, with GE HealthCare set to go in the first week of January,” he said. “This is a really exciting time for our company.” “We are enthusiastic about our intentions to build three separate, investment-grade firms that will be set up to produce long-term shareholder value,” the company stated, “with leading positions in expanding, essential areas.”
In early trading immediately following the announcement of General Electric’s quarterly earnings, the company’s shares were marked 2.1% down to trade at $71.81 per share, increasing the decrease that has occurred over the past six months to around 20%.
It was difficult to deliver products to customers, according to the Chief Financial Officer of GE (NYSE:GE), Carolina Dybeck Happe, who stated a month ago that supply chain disruptions have continued into the second half of the year. These disruptions have affected everything from labor to parts and materials, and have made it more difficult to deliver products. According to Dybeck Happe, several orders are now being delayed until the fourth quarter, which is placing strain on the cash flows for the current quarter.
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Author Valerie Remorosa 
