Followers | 679 |
Posts | 140990 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Tuesday, January 23, 2024 9:55:43 AM
By: Investing | January 23, 2024
(Reuters) -General Electric Co flagged lower-than-expected profit in the current quarter, citing the sluggish pace of improvements at its renewable business, after fourth-quarter earnings topped forecasts on demand for parts and services at its jet engine business.
The company's shares were down about 2% in pre-market trade.
The Boston, Massachusetts-based company said while the pace of profit improvement at its renewable business is expected to gather steam in the second half of the year, the performance in the first quarter "will look a lot like the fourth quarter."
The unit, part of the company's portfolio of energy businesses called GE Vernova, has failed to turn a profit in the past two years. Its losses in the fourth quarter narrowed from a year ago.
"There's a little bit of lag between order to revenue conversion," GE's Chief Financial Officer Rahul Ghai said on an earnings call. "And so the renewables improvement will be more back-end loaded."
Overall, the company expects an adjusted profit of 60-65 cents a share in the quarter through March compared with 72 cents a share expected by analysts in a LSEG survey.
GE's aviation business has been riding a surge in demand for aftermarket services as a strong rebound in travel and a shortage of new jets prompt airlines to keep their planes in the air for longer periods.
The company said the aerospace business, which makes engines for jets of Boeing (NYSE:BA) and Airbus, is expected to report $6.0 billion to $6.5 billion in adjusted operating profit in 2024 and more than $5 billion in free cash flow.
The grounding of Boeing's 737 MAX 9 airplanes for safety checks after a cabin panel fell off during an Alaska Airlines flight this month as well as a snag with rival RTX's Pratt & Whitney Geared Turbofan (GTF) engines are expected to keep the demand high for aftermarket services.
"The recent Alaska Airlines accident makes the commercial aerospace aftermarket once again the safest portion of the sector into earnings, with demand robust and pricing power firmly intact," J.P. Morgan analyst Seth Seifman wrote in a note last week.
CFM International, GE's joint venture with France's Safran (EPA:SAF) SA, is an engine supplier for Boeing's 737 MAX jetliners and competes with RTX's Pratt & Whitney to power Airbus' 320neo jets.
GE, which has completed the separation of its healthcare business, said on Tuesday it would spin off its energy businesses, including renewables, into a separate company in early April.
As a result, it provided separate full-year estimates for its energy businesses including renewables and aerospace unit.
GE said its portfolio of energy businesses, known as GE Vernova, is estimated to generate revenue of $34 billion to $35 billion and free cash flow of $700 million-$1.1 billion in 2024.
GE's adjusted profit for the December quarter came in at $1.03 per share, higher than 91 cents a share expected by analysts. Total revenue rose 15% to $19.42 billion.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent GE News
- U.S. Index Futures Rise in Pre-Market, Oil Prices Dip Slightly • IH Market News • 04/23/2024 11:26:41 AM
- Costco Increases Dividend by 14%, Meta Introduces ‘Artemis’ AI Chip, and More News • IH Market News • 04/11/2024 11:24:54 AM
- GE Aerospace Board of Directors Authorizes Regular Quarterly Dividend • Business Wire • 04/05/2024 04:02:00 PM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- GE Aerospace Launches as Independent, Investment-Grade Public Company Following Completion of GE Vernova Spin-Off • Business Wire • 04/02/2024 10:33:00 AM
- Walgreens Slashes Annual Profit Forecast; MillerKnoll Nosedives 17% on Bleak 4Q Outlook, and Latest News • IH Market News • 03/28/2024 01:48:04 PM
- GE Vernova and Solventum Set to Join S&P 500; Dentsply Sirona to Join S&P MidCap 400; Others to Join S&P SmallCap 600 • PR Newswire (US) • 03/27/2024 10:12:00 PM
- Apple & Google in Talks for Gemini AI on iPhone, Nvidia’s GTC Conference Today, and Latest News • IH Market News • 03/18/2024 11:10:46 AM
- Intel Loses Pentagon Funding, Shell Plans 20% Business Team Reduction, and Latest News • IH Market News • 03/13/2024 11:02:03 AM
- Sam Altman Rejoins OpenAI Board; Coinbase, MicroStrategy Surge Pre-Market Amidst Bitcoin’s Latest Milestone • IH Market News • 03/11/2024 10:39:03 AM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 03/08/2024 10:01:02 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/07/2024 11:20:28 AM
- GE Aerospace Hosts 2024 Investor Day • Business Wire • 03/07/2024 11:15:00 AM
- GE Vernova Hosts 2024 Investor Day • Business Wire • 03/06/2024 11:15:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:29:57 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:28:33 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:27:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:25:29 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:24:06 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:22:42 PM
- Futures Pointing To Continued Weakness On Wall Street • IH Market News • 03/05/2024 02:03:27 PM
- Form 8-K/A - Current report: [Amend] • Edgar (US Regulatory) • 02/29/2024 09:56:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/29/2024 09:54:55 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/29/2024 09:54:09 PM
- GE Board of Directors Approves Spin-Off of GE Vernova; GE Vernova and GE Aerospace to Launch April 2, 2024 • Business Wire • 02/29/2024 09:51:00 PM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM
Avant Technologies to Implement AI-Empowered, Zero Trust Architecture in Its Data Centers • AVAI • Apr 29, 2024 8:00 AM
Bantec Reports an Over 50 Percent Increase in Sales and Profits in Q1 2024 from Q1 2023 • BANT • Apr 25, 2024 10:00 AM
Cannabix's Breath Logix Alcohol Device Delivers Positive Impact to Private Monitoring Agency in Montana, USA • BLO • Apr 25, 2024 8:52 AM