General Electric (GE -4.5%) sinks as much as 5% after saying it expects supply chain challenges will continue to pressure growth, profit and free cash flow at least through the first half of this year.
"While we are seeing progress on our strategic priorities, we continue to see supply chain pressure across most of our businesses as material and labor availability and inflation are affecting Healthcare, Renewable Energy and Aviation," the company said in investor newsletter.
GE said the supply chain pressures are included in its previously provided full-year guidance for EPS of $2.80-3.50 and for free cash flow of $5.5B-6.5B, but "the magnitude of these challenges likely present pressure to overall growth, profit and FCF through the first quarter and the first half, beyond typically expected seasonality. As a result, supply chain headwinds may continue to partially mask the significant progress we are making across our businesses."
Supply chain woes could result in downgrades going forward, given Wall Street's solidly bullish consensus on GE shares.