General Electric Reports Strong Q2 Results

Shares of General Electric Co. (GE) soared 1.8% to a 5 1/2-year high in premarket trading on Tuesday following the company's impressive second-quarter performance. GE cited "robust" services growth, increased aerospace demand, and record renewable energy orders as the drivers behind the positive results, which surpassed expectations.

Financial Highlights

• Net income: $946 million or 86 cents per share (compared to a loss of $1.25 billion or $1.13 per share in the same period last year)
• Adjusted earnings per share: 68 cents (up from 36 cents), exceeding the FactSet consensus of 46 cents
• Total revenue: $16.70 billion (up 18.2%), surpassing the FactSet consensus of $14.76 billion

Segment Performance

• GE Aerospace: Revenue rose by 28% to $7.86 billion
• Renewable Energy: Revenue increased by 24% to $3.85 billion
• Power: Revenue slipped by 1% to $4.15 billion

Future Outlook

GE remains confident about its future prospects, planning to separate GE Aerospace and GE Vernova in early 2024, following the successful separation of GE Healthcare Technologies Inc. at the beginning of 2023. The company also provided an improved outlook for 2023:

• Adjusted EPS guidance: Raised from $1.70 to $2.00 to $2.10 to $2.30
• Free cash flow guidance: Raised from $3.6 billion to $4.2 billion to $4.1 billion to $4.6 billion

Market Performance

Over the past three months, GE stock has gained an impressive 12.0%, outperforming the S&P 500, which has advanced 11.9%.