Early on Tuesday, General Electric (NYSE:GE) reported third-quarter results below expectations, although GE stocks/shares increased as a result of higher-than-anticipated sales and cash flow. Before results later this week, Boeing (BA) didn’t alter all that much.
Jet engines are provided by General Electric (NYSE:GE) to the aircraft manufacturers Boeing and Airbus (EADSY). The demand for commercial air travel has been recovering since the epidemic, according to statements made this month by United Airlines (UAL) and Delta Air Lines (DAL). The manufacturing supply chain is still being affected by persisting supply interruptions and mounting economic worries.
General Electric’s Profit and GE Stock
FactSet polled analysts who predicted a 17% reduction in EPS to 47 cents on a 0.1% decline in revenue to $18.404 billion. Free cash flow (FCF) of $284.5 million was the estimate, higher from the preceding quarter but much lower than a year earlier.
As a result, GE’s profits per share fell by 40% to 35 cents. To $19.1 billion, revenue increased 2.8%. At $1.2 billion, free cash flow was nonetheless lower than it was a year ago.
GE anticipates full-year EPS of $2.40 to $2.80. Wall Street anticipated that GE would earn $2.66 per share and generate $4.195 billion in FCF for the whole year. Late in July, GE issued a reduced guidance, citing issues with the supply chain and strain on working capital.
CEO Larry Culp stated in the GE (NYSE:GE) results announcement that “our planned spin-offs continue on track, with GE HealthCare set to launch in the first week of January.” “We are enthusiastic about our intentions to build three separate, investment-grade firms set up to produce long-term shareholder value, with leadership positions in expanding, essential areas.”
Beginning in 2024, GE (NYSE:GE) will start to focus on the aviation industry.
GE Stocks (NYSE:GE)
General Electric stock increased 2% at the start of trade on Tuesday. After surging 4.1% on Friday, GE shares dipped 0.7% to 73.35 on Monday before regaining the 50-day moving average. The price of GE stock increased 7.8% for the third week in a row, although shares are still below the 200-day moving average.
The jet-engine and healthcare businesses are still feeling the effects of supply interruptions, according to GE CFO Carolina Dybeck-Happe on September 15. On October 5, sources informed Reuters that General Electric is trying to reorganize the company in light of sluggish demand, increased prices, and supply-chain delays by letting go of up to 20% of the workforce at its onshore wind subsidiary.
Wall Street is concerned about a probable global recession and a worsening macro picture for cyclical manufacturing businesses.
Boeing Revenue
According to Wall Street estimates, Boeing will end a run of four consecutive losses by posting EPS of 13 cents, up from a loss of 60 cents a year earlier. 18% growth in revenue, or $18.014 billion, is predicted. They forecast a $1.077 billion return on free cash flow (FCF).
Wall Street anticipates a net loss of $1.85 per share and FCF of $595.5 million for the whole year. After four years of deficits, analysts predict that Boeing’s yearly earnings will start to increase in 2023.
A Stock BA
On Tuesday, Boeing’s stock slightly declined. On Monday, BA stock increased 0.5% to 142.03, and on Friday, shares increased 1.6%, marking the third straight week of advances as earnings season approaches. Boeing stock is still significantly below the 200-day line and the 50-day average.
Bloomberg was informed over the weekend by sources that the Public Investment Fund of Saudi Arabia is in discussions with Boeing and Airbus considering orders for roughly 80 planes, the first acquisitions for a brand-new national airline.
Boeing is attempting to postpone the date by which two new 737 Max models must receive certification. After two deadly flights, the 737 Max aircraft was recently grounded globally, which hurt Boeing’s financial results.
While the recovery in air travel has been gaining traction, a personnel shortage has caused a delay in the construction of jet engines and aircraft.
Featured Image – Megapixl © Jetcityimage
Author Valerie Remorosa 
